A parallel downward shift in the net export (NX)function can be caused by
A)an increase in domestic national income.
B)a decrease in foreign national income.
C)a decrease in domestic prices.
D)an increase in the Canadian-dollar price of foreign currency.
E)a decrease in foreign prices.

Question

Quizplus · Accepted Answer

A decrease in foreign national income reduces the demand for exports from the domestic country, leading to a downward shift in the net export function.

A Parallel Downward Shift in the Net Export (NX)function Can