Which of the Following Can Cause a Parallel Upward Shift

question 18

Multiple Choice

Which of the following can cause a parallel upward shift in the net export (NX) function?

• A)an increase in domestic national income
• B)an increase 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)a decrease in foreign prices relative to domestic prices

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Definitions:

Goods

Tangible products that are produced, bought, or sold to satisfy the needs or desires of consumers.

Concept Testing

The process of evaluating consumer response to an idea before introducing a product or service to the market, to ascertain its potential success.

Visual Models

Diagrams or representations used to illustrate complex information or processes, facilitating easier understanding and analysis.

Potential Product

The concept of what a product could become or the highest value that a product can deliver to a consumer, incorporating all possible augmentations and transformations the product might undergo.