-Refer to Figures A, B, C, and D. Which of the figures best illustrates a situation where foreign income rises ceteris paribus?
A) Figure A
B) Figure B
C) Figure C
D) Figure D

Question

-Refer to Figures A, B, C, and D. Which of the figures best illustrates a situation where foreign income rises ceteris paribus?
A) Figure A 
B) Figure B 
C) Figure C 
D) Figure D

Quizplus · Accepted Answer

Figure A likely illustrates a situation where foreign income rises ceteris paribus because an increase in foreign income generally leads to an increase in demand for domestic exports, which can be represented by a shift in the relevant curve (e.g., the demand curve for exports) in economic models.