Which of the following would decrease the United States' net exports to South Korea?

• A. A decrease in U.S. exports to South Korea
• B. An increase in U.S. exports to South Korea
• C. An increase in U.S. imports from South Korea
• D. A decrease in U.S. imports from South Korea

Answer: (C)

Verified step by step guidance

1. Understand that net exports (NX) are calculated as the value of a country's exports minus its imports: \(\text{NX} = \text{Exports} - \text{Imports}\).
2. Recognize that a decrease in U.S. exports to South Korea would reduce the exports component, thus decreasing net exports.
3. Note that an increase in U.S. exports to South Korea would increase the exports component, thus increasing net exports.
4. Understand that an increase in U.S. imports from South Korea raises the imports component, which reduces net exports because imports are subtracted.
5. Recognize that a decrease in U.S. imports from South Korea lowers the imports component, which increases net exports.