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WAEC Economics 2002 Question 45

Question 45

Balance of Payments and Exchange Rates

A nation's net export is negative when her

  1. A.stock of goods is declining.
  2. B.depreciation exceeds investment.
  3. C.export is adjusted upwards.
  4. D.imports exceed exports.
Show the answer and explanation

Answer: D (imports exceed exports.)

Explanation

Net exports = exports − imports, which is negative when imports are greater.