Expansion remains slow
The Commerce Department reported that retail sales increased 1.3 percent in June. Net exports were up 0.8 percent in the first quarter and inventones held by
businesses rose by 0.3 percent in June. Total sales by businesses rose 0.3 percent
Source: Commerce Department, 2013
What is the effect of the rise in net exports on GDP?
The rise in net exports
A. increases GDP
B. increases GDP only if exports increase. A decrease in imports has no effect on GDP
C. has no effect on GDP
D. decreases GDP
E. increases or decreases GDP depending on whether it is composed of an increase in exports or a decrease in imports