Ceteris paribus, a downward shift in the net exports function will cause:
a. equilibrium real GDP to decrease.
b. equilibrium real GDP to increase.
c. savings to decrease.
d. net exports to increase.
e. government budget deficit to decline.
a
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An optimal decision is one that chooses the most desirable from among all possibilities that are available.
Answer the following statement true (T) or false (F)
To be accepted as money, an item must perform all of the following functions EXCEPT
A) be a medium of exchange. B) serve as a store of value. C) be easily reproduced. D) serve as a standard of deferred payment.
When the U.S. price level rises relative to other nations' price levels, then
A) U.S. exports decrease, U.S. imports increase, and the aggregate demand curve shifts rightward. B) U.S. exports decrease, U.S. imports increase, and there is a movement upward along the aggregate demand curve. C) U.S. exports increase and the aggregate demand curve shifts rightward. D) U.S. exports decrease, U.S. imports increase, and the aggregate demand curve shifts leftward. E) U.S. firms' profits increase and the aggregate demand curve shifts rightward.
There has been a massive relocation of heavy industry from the U.S. Northeast and upper Midwest to the "Sun Belt."
Indicate whether the statement is true or false