If an Economy's Exports Rise by $8 Billion and Its

Multiple Choice

If an economy's exports rise by $8 billion and its imports fall by $8 billion between 2016 and 2017, by how much will GDP change between the two years, all else equal?

A) Net exports will increase GDP by $8 billion.
B) The increase in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.
C) Net exports will increase GDP by $16 billion.
D) Net exports will decrease GDP by $8 billion.
E) Net exports will decrease by $16 billion.