Which of the following changes would cause American net exports to increase?
A)An increase in the real value of the dollar
B)An increase in American income
C)An increase in foreign income
D)A shift in demand by American consumers away from domestically produced goods

Question

Quizplus · Accepted Answer

An increase in foreign income would cause American net exports to increase because it would increase demand for American goods from abroad. When foreign income increases, consumers in other countries have more purchasing power and are able to buy more American goods, therefore increasing American net exports.

Which of the Following Changes Would Cause American Net Exports