113k views
1 vote
What actions could be taken to stabilize output in response to a large decrease in u.S. Net exports?

User IrfanM
by
5.7k points

1 Answer

3 votes

Answer:

decrease taxes or increase the money supply

Step-by-step explanation:

A decrease in taxes or an increase in money supply will stimulate firms to increase the production of goods and hence increase export. Additionally, with increase in money supply, more individuals will be encouraged to go into production which will result in an increase in productivity and subsequent increase in export volume.

User Benhatsor
by
5.9k points