If Net Exports Increase, but Neither Government Expenditure nor Net

question 259

True/False

If net exports increase, but neither government expenditure nor net taxes change, investment must increase.

---

Definitions:

Overhead Costs

Expenses not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

Newspaper Industry

Refers to the sector of the economy that is engaged in the production and distribution of newspapers, involving both print and, increasingly, digital platforms.

Shrink

The reduction in inventory due to factors such as theft, damage, or errors in record-keeping.

Output

The total amount of goods or services produced by a company or economy in a given period.