What would be the impact of an increase in foreign income on the net export function?
a. The net export function would shift upward.
b. The net export function would shift downward.
c. The slope of the net export function would increase.
d. The slope of the net export function would decrease.
e. There would be a movement up along the net export function.
b
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Refer to Figure 22-1. Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s. By doing so, these countries were essentially preventing a moment from
A) B to C. B) D to C. C) A to B. D) B to A.
Suppose an economy is in equilibrium. Also suppose that consumer expectations change as the threat of war increases the likelihood of an increase in taxes. This would result in:
a. an increase in equilibrium income. b. no change in equilibrium income. c. a downward shift of the aggregate supply curve. d. a decrease in equilibrium income. e. a change in the slope of the aggregate supply curve.