The net exports effect is the ____ relationship between net exports and the price level of an economy.
A) inverse
B) independent
C) direct
D) linear

Question

Quizplus · Accepted Answer

The net exports effect demonstrates an inverse relationship between net exports and the price level of an economy. This is due to the fact that as prices rise, exports become more expensive for foreign buyers, leading to a decrease in net exports. Conversely, as prices fall, exports become more affordable, leading to an increase in net exports.

The Net Exports Effect Is the ____ Relationship Between Net