Gross exports depend on A) real income of our trading partners (Y^f) and the real exchange rate. B) domestic real income (Y) and the real exchange rate. C) real income of our trading partners (Y^f) and the nominal exchange rate. D) real income of our trading partners (Y^f) and the real interest rate.

Question

Quizplus · Accepted Answer

Gross exports are influenced by the real income of a country's trading partners, as higher income increases demand for imports, and by the real exchange rate, which affects the price competitiveness of a country's goods abroad.

Gross Exports Depend on