Which of the following can cause a parallel upward shift in the net export (NX)function?
A)an increase in domestic national income
B)an increase in foreign national income
C)an increase in domestic prices relative to foreign prices
D)a decrease in the Canadian-dollar price of foreign currency
E)a decrease in foreign prices relative to domestic prices

Question

Quizplus · Accepted Answer

An increase in foreign national income can lead to higher demand for domestic exports, causing a parallel upward shift in the net export function.

Which of the Following Can Cause a Parallel Upward Shift