An increase in foreign income,other things being equal,is assumed to cause the net export (NX)function to
A)shift parallel upward.
B)shift parallel downward.
C)pivot downward.
D)pivot upward.
E)remain stationary.

Question

Quizplus · Accepted Answer

An increase in foreign income typically leads to higher demand for exports from the domestic country, causing the net export function to shift parallel upward.

An Increase in Foreign Income,other Things Being Equal,is Assumed to Cause