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:

Sales Tax

A tax imposed by governments on sales of goods and services, typically a percentage of the sale price paid by the consumer.

Income Rises

An increase in the amount of money received by an individual or household, which can affect purchasing power and economic status.

Proportional Tax

A taxation system where the tax rate remains constant regardless of the amount subject to tax, leading to a uniform tax rate for all taxpayers.

Diagram

A diagram is a simplified drawing showing the appearance, structure, or workings of something, typically used for explanation or clarification.