A decrease in domestic national income will cause a ________ the net export (NX)function.
A)movement to the left along
B)parallel downward shift of
C)parallel upward shift of
D)rotation upward in
E)rotation downward in

Question

Quizplus · Accepted Answer

A decrease in domestic national income will cause a movement to the left along the net export (NX) function. This is because a decrease in domestic national income will lead to a decrease in imports, which will in turn lead to an increase in net exports.

A Decrease in Domestic National Income Will Cause a ________