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:

Production Manager

An individual responsible for overseeing the production process, coordinating all activities related to the actual production of goods or services.

Accounts Receivable Balance

The sum total of money that customers are in debt to a company for its goods or services that have been utilized but not paid for.

Firm's Cash Cycle

The length of time it takes a company to convert its investments in inventory and other resources into cash flows from sales.