Exports are positively related to domestic income and negatively related to the exchange rate.

Name: Exports are positively related to domestic income and negatively related to the exchange rate.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Exports are positively related to the exchange rate (a weaker domestic currency makes exports cheaper and more competitive abroad) and negatively related to domestic income (as domestic income increases, domestic consumption increases, potentially reducing the amount of goods available for export).

Exports Are Positively Related to Domestic Income and Negatively Related