The correct answer is C.
The Gross Domestic Product (GDP) is the measure which agreggates the monetary value of all goods and services produced in an economy during a certain period of time, generally one year. This macroeconomic figure is constituted by the following elements:
GDP = C + I + G + XN
where,
C = household's consumption
I = private investment
G = public expenditure
XN = net exports = exports (X) - imports (M)
Therefore the expression can be rewritten in the following way:
GDP = C + I + G + X - M
The GDP is the result the addition of four elements and the substraction of one: the amount of imports. Therefore, the larger the quantity imported, the smaller the final GDP figure will be (ceteris paribus).
