Which Statement Is NOT True About Net Exports

question 17

Multiple Choice

Which statement is NOT true about net exports?

• A) A nation that imports more than it exports has negative net exports.
• B) U.S. imports cannot contribute to the GDP of other nations.
• C) The United States has had negative net exports for every quarter since the third quarter of 1980.
• D) The smallest component of U.S. GDP is net exports.

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Definitions:

Credit Terms

Conditions under which credit will be extended to a borrower, including repayment schedule, interest rate, and the duration of the loan.

Perpetual Inventory System

An inventory management system that tracks inventory levels in real-time, updating with every sale or purchase transaction.

Gross Method

An accounting method used in invoicing that records the full price of goods or services without deducting any sales discounts upfront.

Credit Terms

Conditions under which credit is granted, including repayment period, discount for early payment, and interest rate.