A Fall in Domestic Prices Relative to Foreign Prices, Other

question 11

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)downward; become steeper
• B)downward; become flatter
• C)downward; and maintain the same slope
• D)upward; become flatter
• E)upward; become steeper

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