Which of the following both reduce net exports? a. exports rise, imports rise b. exports rise, imports fall c. exports fall, imports rise d. exports fall, imports fall

Question

Melvin Jefferson

Business

5 February, 00:16

Which of the following both reduce net exports? a. exports rise, imports rise b. exports rise, imports fall c. exports fall, imports rise d. exports fall, imports fall

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Answers (1)

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Alvaro Price · Answer 1

Option (C) is correct.

Explanation:

Net exports is defined as the difference between the two components that are as follows:

(1) Exports

(2) imports.

Net exports = Exports - Imports

If there is a fall in the amount of exports of a nation then as a result the net exports of that nation falls and if there is a rise in the imports of a nation then this will also lead to reduce the net exports of that nation.