Which of the following can cause a parallel downward shift in the net export (NX)function?
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

Question

Quizplus · Accepted Answer

A decrease in foreign national income reduces foreign demand for domestic exports, causing a parallel downward shift in the net export function.

Which of the Following Can Cause a Parallel Downward Shift