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Q:

Net exports are negative when

A) exports are greater than imports B) imports are greater than exports
C) No exports D) None of the above

Answer:   B) imports are greater than exports



Explanation:


When exports are greater than imports, net exports are positive and similarly, when imports are greater than exports, net exports are negative.

 

When a country imports goods, it buys them from foreign producers. The money spent on imports leaves the economy, and that decreases the importing nation's GDP.

Subject: Indian Economy
Exam Prep: AIEEE , Bank Exams , CAT
Job Role: Analyst , Bank Clerk , Bank PO
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