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

question 84

Multiple Choice

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

• A)an increase in domestic national income.
• B)a decrease in foreign national income.
• C)a decrease in domestic prices.
• D)an increase in the Canadian-dollar price of foreign currency.
• E)a decrease in foreign prices.

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Definitions:

Financial Institutions

Organizations that provide financial services, including banks, insurance companies, and investment firms.

Financial Markets

Financial institutions through which savers can directly provide funds to borrowers

Investment

The allocation of resources, often money, in the hope of generating an income or profit.

Real GDP

The measure of a country's gross domestic product adjusted for inflation, reflecting the value of all goods and services produced at constant prices.