An Upward Shift and Flattening of the Net Export (NX)function

question 37

Multiple Choice

An upward shift and flattening of 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 relative to foreign prices.
• D)an increase in the Canadian-dollar price of foreign currency.
• E)both C and D are correct

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Definitions:

Trade Among States

The exchange of goods, services, or both between states within a country, subject to regulations and restrictions by the government.

Commerce Clause

A provision in the United States Constitution that grants Congress the power to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.

Federal Power

Federal power encompasses the authorities and actions exercised by the federal government, as specified by the Constitution, including regulating interstate commerce, maintaining the armed forces, and creating federal laws.

Expansion

The process of increasing in size, number, or scope, often used in the context of territory, businesses, or organizations.