Final answer:
When net exports are negative, it indicates a trade deficit, showing that a country imports more than it exports, resulting in spending flowing out of the country.
Explanation:
When net exports are negative, it implies a trade deficit where a nation's imports exceed its exports. This negative value means spending flows out of the country to the rest of the world. A trade deficit indicates that there is an imbalance in trade where a country is buying more than it is selling.
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