Net Exports Measures the Difference Between a Country's

question 16

Multiple Choice

Net exports measures the difference between a country's

• A)income and expenditures.
• B)sale of goods and services abroad and purchase of foreign goods and services.
• C)sale of domestic assets abroad and purchase of foreign assets.
• D)All of the above are correct.

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Definitions:

Depreciation

Depreciation is the allocation of the cost of a tangible asset over its service life, reflecting the decrease in value due to wear and tear, age, or obsolescence.

Net Investment

The difference between total investment in new physical assets and depreciation on existing assets, indicating the net increase in the capital stock of an economy.

Economy

A system of production, distribution, and consumption of goods and services within a region or country.

Gross Domestic Product (GDP)

The aggregate value, measured in terms of money or market worth, of every finished product and service generated within a country's borders over a certain time span.