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Which of the following would have the greatest positive impact on a country's domestic economy? A....

Which of the following would have the greatest positive impact on a country's domestic economy?

A. An increase in spending on imports from other countries.

B. An increase in spending by foreigners on the country's exports

C A decrease in the confidence of foreign investors in the country's economy

D A decrease in the incomes of consumers in foreign countries.

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Answer #1

Ans: B ) An increase in spending by foreigners on the country's exports.

Explanation:

An increase in spending by foreigners on the country's exports leads expansion of industries which are related to exports. As a result the domestic country will earn more foreign exchanges. It will create more employment in the domestic economy. Overall it will have the greatest positive impact on a country's domestic economy.

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