If a Country Imports More Than It Exports

Multiple Choice

If a country imports more than it exports:

A) net exports will increase, causing aggregate expenditure to rise and leading to an increase in equilibrium GDP.
B) net exports will decrease, causing aggregate expenditure to fall and leading to a decrease in equilibrium GDP.
C) the currency will appreciate, leading to a rise in aggregate expenditures.
D) aggregate expenditure will rise, leading to an increase in equilibrium GDP.