01 What represents the foreign sector’s net expenditure on domestic product in the expenditure method?
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Answer and explanation
Correct answer: D. NX — शुद्ध निर्यात
Explanation: In the expenditure method, the foreign sector’s contribution is represented by net exports, written as NX = exports minus imports. Exports are spending by foreigners on domestically produced goods and services, while imports are domestic spending on foreign production. Therefore, NX measures the foreign sector’s net expenditure on domestic product and is added to domestic expenditure.