Question : 21) An upward shift and flattening of the net export : 1384381

21) An upward shift and flattening of the net export (NX) function can be caused by

A) an increase in domestic national income.

B) a decrease in foreign national income.

C) a decrease in domestic prices relative to foreign prices.

D) an increase in the Canadian-dollar price of foreign currency.

E) both C and D are correct

22) A downward shift and steepening of the net export (NX) function can be caused by

A) an increase in domestic national income.

B) a decrease 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) both C and D are correct.

23) The net export (NX) function crosses the horizontal axis at a level of national income where the

A) X and IM curves intersect.

B) X curve reaches the horizontal axis.

C) IM curve reaches the horizontal axis.

D) X and IM curves are at their farthest distance apart.

E) X curve reaches its maximum.

24) A rise in domestic prices relative to foreign prices, other things being equal, causes the net export (NX) function to shift ________ and ________.

A) upward; become flatter

B) upward; become steeper

C) downward; become flatter

D) downward; keep the same slope

E) downward; become steeper

25) A fall in domestic prices relative to foreign prices, other things being equal, causes the net export (NX) function to shift ________ and ________.

A) upward; become flatter

B) upward; become steeper

C) downward; become flatter

D) downward; keep the same slope

E) downward; become steeper

26) A rise in the Canadian-dollar price of foreign currency, other things being equal, causes Canada’s net export (NX) function to shift ________ and ________.

A) upward; become flatter

B) upward; become steeper

C) downward; become flatter

D) downward; keep the same slope

E) downward; become steeper

27) A fall in the Canadian-dollar price of foreign currency, other things being equal, causes Canada’s net export (NX) function to shift ________ and ________.

A) upward; become flatter

B) upward; become steeper

C) downward; become flatter

D) downward; keep the same slope

E) downward; become steeper

28) A decrease in domestic national income will cause a ________ the net exports (NX) function.

A) movement to the left along

B) parallel downward shift of

C) parallel upward shift of

D) rotation upward in

E) rotation downward in

29) An increase in foreign income, other things being equal, is assumed to cause the net export (NX) function to

A) shift parallel upward.

B) shift parallel downward.

C) pivot downward.

D) pivot upward.

E) remain stationary.

30) Consider the net export function. An increase in domestic national income, other things being equal, is assumed to cause

A) the net export function to shift upward.

B) the net export function to pivot upward.

C) movement to the right along the net export function.

D) the net export function to pivot downward.

E) no effect on net exports.