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

question 10

Multiple Choice

A fall 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:

Phi Phenomenon

The optical illusion of perceiving continuous motion between separate objects viewed in rapid succession.

Gestalt Psychology

A psychological approach that emphasizes the holistic and intrinsic properties of the mind's perception of the world, suggesting that the whole of anything is greater than its parts.

Gestalt

A theory of mind and brain that proposes that the operational principle of the brain is holistic, parallel, and analog, with self-organizing tendencies; or the idea that the whole is greater than the sum of its parts.

Form or Pattern

Refers to the recognizable shape, structure, or arrangement in which something is organized or occurs.