Net+Export+Spending


 * Net Export Spending**


 * -Is the total value of a country's exports minus imports. It is used to calculate the aggregate expenditures, or GDP of a country. Basically, how much more is spent on foreign goods and services a country buys compared to how much the one sells to other countries. One thing that has a major effect on net exports is the exchange rate. The equation to find net exports is: X-(IM). The amount a country spends on exports and imports can cause deficits or a surplus' in the government. If the government spends more than the tax revenue it comes into a deficit, if they spend less than the tax revenue it is a surplus. Net Export spending is autonomous because it doesn't depend on a country's national income. If exports exceed imports there is a trade surplus, as well as if imports exceed exports there is a trade deficit. When prices go down, exports increase, imports decrease and net export spending increases.**
 * Determinants of Net Export spending include(Xn):**
 * 1) Price of Canadian goods increase, causing export spending(X) to decrease and import spending(IM) to increase= net exports(Xn) increasing.**
 * 2) Price of U.S. goods increases, causes export spending to increase, import spending to decrease= net exports to increase.**
 * 3) Canadian dollar appreciates(gains in value), import spending increases, export spending decreases= net exports decrease.**
 * 4)Foreign income increases(US), export spending increases, it has no effect on import spending, in turn net exports increase.**
 * 5) Preferences change, export spending increases, import spending-no effect, and net exports increase.**