93.4k views
5 votes
Suppose the government increases its spending and that net exports increase. In 2 or 3 sentences, explain how these actions affect economic performance.

User Mkab
by
7.9k points

1 Answer

2 votes
In general, if an increase in government spending leads to an increase in exports then this has a positive result on economic performance, since export revenues are greater--as long as these revenues are greater than the government spending. 
User Raveren
by
8.1k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.