Which of the following would shift the U.S. net export function downward?
A)an increase in the value of the U.S. dollar relative to other currencies
B)a decrease in the value of the U.S. dollar relative to other currencies
C)a decrease in U.S. incomes relative to other countries
D)a decrease in U.S. price levels relative to foreign price levels
E)an increase in foreign incomes relative to U.S. incomes

Question

Quizplus · Accepted Answer

An increase in the value of the U.S. dollar relative to other currencies would make U.S. exports more expensive for foreign buyers, reducing demand for U.S. exports and shifting the net export function downward.

Which of the Following Would Shift the U