Which of the Following Can Cause a Downward Shift and Steepening

question 124

Multiple Choice

Which of the following can cause a downward shift and steepening of the net export (NX) function?

• A)an increase in domestic national income
• B)a decrease in foreign national income
• C)an increase in domestic prices relative to foreign prices
• D)a decrease in the Canadian-dollar price of foreign currency
• E)both C and D are correct

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Definitions:

Insurance Expense

The amount a company spends on insurance policies to cover various risks, recorded as an expense in the accounting period in which it is incurred.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Credit

In accounting, it refers to the entry that decreases assets or increases liabilities and equity on the company's balance sheet.

Collections

The act of seeking out the settlement of debts from businesses or individuals.