Suppose the government increases its spending and that net exports inc – InterviewSolution

InterviewSolution

1.	Suppose the government increases its spending and that net exports increase. In two or three sentences, explain how these actions affect economic performance.
Answer» In general, if an increase in government spending leads to an increase in EXPORTS then this has a positive RESULT on ECONOMIC performance, SINCE EXPORT revenues are greater--as long as these revenues are greater than the government spending.

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