Answered

Which of the following is
always true when net exports
are negative?
A. Imports and exports are exactly equal.
B. The exchange rate is falling.
C. There is a trade deficit.
D. There is a trade surplus.

Verified Answer :

GinnyAnswer

Final answer:

When net exports are negative, it indicates a trade deficit, showing that a country imports more than it exports, resulting in spending flowing out of the country.


Explanation:

When net exports are negative, it implies a trade deficit where a nation's imports exceed its exports. This negative value means spending flows out of the country to the rest of the world. A trade deficit indicates that there is an imbalance in trade where a country is buying more than it is selling.


Learn more about Net Exports and Trade Balance here:

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