Question

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

Answer 1

Answer:

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.