If a Country Exports More Than It Imports

Multiple Choice

If a country exports more than it imports:

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) aggregate expenditure is not affected in the long run.
D) aggregate expenditure will rise, leading to an increase in equilibrium GDP.