If All Other Factors Are Held Constant, an Increase in Imports

Multiple Choice

If all other factors are held constant, an increase in imports

A) causes an increase in exports of the same size.
B) causes Gross Domestic Product (GDP) to increase.
C) causes Gross Domestic Product (GDP) to decrease.
D) can cause Gross Domestic Product (GDP) to increase or decrease, depending on whether the imports are purchased by consumers or by business firms.