how-does-a-higher-growth-rate-in-the-domestic-economy-compared-to-foreign-econom

Question

How does a higher growth rate in the domestic economy compared to foreign economies affect net exports?

Accepted Answer

Net exports decrease as imports rise due to higher domestic income.

Answer

Net exports increase as domestic goods become more competitive.

Answer

Net exports remain unchanged.

Answer

Net exports increase as foreign demand for domestic goods rises.