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If the import of goods and services in US exceeds the exports, then: C+I+G > GDP (Y) OC+I+G = GDP (Y) O US Net Exports are po

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Answer #1

Net export= export - Import

So if import of goods and services are greater than export, then net export will be negative.

The GDP can be defined the market value of all goods and services which are produced in the domestic territory of the country in the current financial years.

GDP=C+I+G+X-M

Hence when net export is negative, then value of GDP will be less than the sum of (C+I+G) because more import means more consumption and investment. Hence C+I+G will be greater than GDP (Y).

Hence option first is the correct answer.

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