A Rise in Domestic Prices Relative to Foreign Prices,other Things

question 63

Multiple Choice

A rise in domestic prices relative to foreign prices,other things being equal,causes the net export (NX) function to shift ________ and ________.

• A)upward; become flatter
• B)upward; become steeper
• C)downward; become flatter
• D)downward; keep the same slope
• E)downward; become steeper

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Definitions:

Fiscal Responsibility

The obligation of governments or organizations to efficiently and prudently manage their financial resources and liabilities.

Priming

The process by which media and public speech set the stage for how people interpret and recall information, often influencing public perception and opinion.

Public Perceptions

Public perceptions entail the collective beliefs, attitudes, and opinions held by the general population about issues, events, or personalities.

Opinionated Information

Information that contains personal beliefs or judgments rather than factual data alone.