What Would Be the Impact of an Increase in Foreign

question 15

Multiple Choice

What would be the impact of an increase in foreign income on the net export function?

• A)The net export function would shift upward.
• B)The net export function would shift downward.
• C)The slope of the net export function would increase.
• D)The slope of the net export function would decrease.
• E)There would be a movement up along the net export function.

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Definitions:

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Cost

Financial obligations that adjust directly based on the level of produced goods or services.

Peak-period Requirements

The heightened capacity and resource needs of a business or system during its busiest or most active times.

Equipment Services Department

A division within a company that is responsible for the maintenance, repair, and management of physical assets and equipment.