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.

---

Definitions:

Expected Shortage

The anticipated deficiency in quantity or supply of a product or resource relative to the expected demand for that product or resource.

Safety Inventory

Additional stock kept to mitigate the risk of stockouts and production halts due to fluctuations in demand and supply chain disruptions.

Supply Chain Manager

An expert in charge of supervising and directing the strategy and operations of a corporation's supply chain and logistics.

Replenishment Cycle

The recurring process of restocking sold-out or used products in inventory to maintain a desired stock level.