If a Nation's Imports Exceed Its Exports

question 146

Multiple Choice

If a nation's imports exceed its exports:

• A)​net exports will be positive.
• B)​GDP will be less than the sum of consumption, investment, and government purchases.
• C)​GDP will be greater than the sum of consumption, investment, and government purchases.
• D)​none of the above apply.

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Definitions:

Money Supply

The total amount of money available in an economy, including cash, coins, and balances held in checking and savings accounts.

Classical Economists

Economists from the late 18th and early 19th centuries who focused on the role of free markets in promoting economic growth and wealth distribution.

Fiscal Policy

Fiscal policy involves the use of government spending and tax policies to influence economic conditions, including aggregate demand, employment, and inflation.

Investment Swings

Refers to the fluctuations in investment spending on business capital goods, which can be influenced by interest rates, business confidence, and economic conditions.