Advertisements
Advertisements
Question
Why are exports added in calculating Net Exports?
Options
They are produced outside the domestic economy
They represent foreign spending on domestic goods
They reduce domestic production
They are transfer payments
MCQ
Advertisements
Solution
Exports are added because they represent foreign spending on goods produced domestically. This spending contributes to domestic production and expenditure.
shaalaa.com
Is there an error in this question or solution?
