If a Graph Is Drawn with Net Exports on the Horizontal

question 36

Multiple Choice

If a graph is drawn with net exports on the horizontal axis and the real exchange rate on the vertical axis, then the real exchange rate is determined by the intersection of the ______ net-exports schedule and the ______ line representing saving minus investment.

• A) downward-sloping; vertical
• B) upward-sloping; vertical
• C) downward-sloping; upward-sloping
• D) upward-sloping; downward-sloping

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Definitions:

Focus

In geometry and optics, the point where rays or waves meet or from which they diverge, especially after reflection or refraction.

Function

A relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.

Vertices

Plural of vertex, referring to the corners or angular points where two or more edges meet in a geometrical shape or graph.

Center

In geometry, it refers to the midpoint of a circle or sphere, equidistant from all points on the perimeter or surface.