In 2007, the value of the dollar declined, which should have __________ exports, __________ imports, and shifted the net export function __________.
A)increased, decreased, downward
B)increased, increased, upward
C)increased, decreased, upward
D)decreased, decreased, downward
E)decreased, increased, downward

Question

Quizplus · Accepted Answer

When the value of the dollar declines, it becomes cheaper for countries with other currencies to purchase American goods, therefore increasing exports. On the other hand, American consumers will find imports more expensive, leading to a decrease in imports. The net export function is shifted upward as a result of these changes.

In 2007, the Value of the Dollar Declined, Which Should