A rise in the incomes of domestic consumers causes net exports to
A)decline.
B)not change.
C)rise.
D)rise at first, then decline later.

Name: A rise in the incomes of domestic consumers causes net exports to A)decline. B)not change. C)rise. D)rise at first, then decline later.
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Question

Quizplus · Accepted Answer

When domestic consumers have more income, they tend to buy more imported goods, which increases imports and decreases net exports. Therefore, a rise in the incomes of domestic consumers causes net exports to decline.

A Rise in the Incomes of Domestic Consumers Causes Net