Which of the following changes would cause American net exports to decrease?
A)A decrease in the real value of the dollar
B)A decrease 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

If American consumers shift their demand away from domestically produced goods, there will be a decrease in the export of those goods, leading to a decrease in net exports. A decrease in the real value of the dollar would make American products cheaper for foreign buyers, leading to an increase in net exports. A decrease in American income would lead to a decrease in domestic consumption and a decrease in imports, leading to an increase in net exports. An increase in foreign income would lead to an increase in foreign demand for American products, leading to an increase in net exports.

Which of the Following Changes Would Cause American Net Exports