A Parallel Upward Shift in the Net Export (NX)function Can

question 127

Multiple Choice

A parallel upward shift in the net export (NX) function can be caused by

• 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:

Interests

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Drive Theories

Psychological theories that posit behavior is motivated by desires to satisfy biological needs or drives.

Incentive Theories

Theories that suggest that behavior is motivated by a desire for reinforcement or incentives.

Sociobiological

Relating to the study of the biological basis of social behavior, suggesting that such behavior is influenced by evolutionary factors.