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4 years ago

The value of U.S. imports is Multiple Choice

Business

1 answer:

Salsk061 [2.6K]4 years ago

6 0

Answer:

Option (1) is correct.

Explanation:

The value of imports refers to the amount of goods that are purchased by the residents of the home country from the foreign country. While calculating the gross domestic product (GDP) of a particular nation the value of imports is subtracted from the value of exports of that nation.

The value of imports doesn't contribute towards the domestic production of United States because these goods are produced in the foreign country.

GDP = Consumption + Investment + Government spending + Net Exports

= Consumption + Investment + Government spending + (Exports - Imports)

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4 years ago

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