Consider the net export function (NX).An increase in foreign income,other things being equal,is assumed to cause the NX function to
A)shift parallel upward.
B)shift parallel downward.
C)pivot downward.
D)pivot upward.
E)remain stationary.

Question

Quizplus · Accepted Answer

An increase in foreign income will likely lead to an increase in demand for domestic goods and services, leading to an increase in exports. This will cause the net export function to shift parallel upward.

Consider the Net Export Function (NX)