Which of the Following Would Shift the U

question 18

Multiple Choice

Which of the following would shift the U.S. net export function downward?

• A)an increase in the value of the U.S. dollar relative to other currencies
• B)a decrease in the value of the U.S. dollar relative to other currencies
• C)a decrease in U.S. incomes relative to other countries
• D)a decrease in U.S. price levels relative to foreign price levels
• E)an increase in foreign incomes relative to U.S. incomes

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Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and free market entry and exit, leading to price taking by firms.

Purely Competitive

A rephrasing of "Pure Competition," indicating a market structure with many participants, no barriers to entry, and a standard product.

Optimal Allocation

The most efficient distribution of resources in a manner that maximizes the net benefit received from their use.

Scarce Resources

Natural or economic resources that are limited in supply compared to the demand for them.