An increase in the value of the U.S. dollar relative to other currencies will
A)shift the autonomous net export function upward
B)shift the autonomous net export function downward
C)cause a rightward movement along the autonomous net export function
D)cause a leftward movement along the autonomous net export function
E)show no movement along or shift of the autonomous net export function

Question

Quizplus · Accepted Answer

An increase in the value of the U.S. dollar makes U.S. goods more expensive for foreign buyers and foreign goods cheaper for U.S. buyers, leading to a decrease in net exports, which shifts the autonomous net export function downward.

An Increase in the Value of the U