If variable net exports increase by the same amount at every level of income, then there is an upward and parallel shift of the net export line.

Question

Quizplus · Accepted Answer

When variable net exports increase by the same amount at every level of income, it means that the net export function is independent of income. In such a scenario, the net export line will shift upward and in a parallel manner, indicating that net exports will increase by the same amount at every income level.

If Variable Net Exports Increase by the Same Amount at Every