Which of the following will lead to an increase in United States net exports?

• A. An increase in United States imports
• B. A decrease in United States imports
• C. A decrease in United States exports
• D. No change in either United States exports or imports

Answer: (B)

Verified step by step guidance

1. Understand the definition of net exports (NX), which is given by the formula: \(\text{NX} = \text{Exports} - \text{Imports}\). Net exports represent the value of a country's exports minus the value of its imports.
2. Analyze how changes in imports affect net exports: since imports are subtracted in the net exports calculation, an increase in imports will decrease net exports, while a decrease in imports will increase net exports.
3. Analyze how changes in exports affect net exports: since exports are added in the net exports calculation, an increase in exports will increase net exports, while a decrease in exports will decrease net exports.
4. Evaluate each option in the problem by applying the net exports formula: for example, a decrease in United States imports means the subtraction term becomes smaller, which increases net exports.
5. Conclude that the option leading to an increase in net exports is the one where imports decrease or exports increase, and identify the correct choice accordingly.