Exam 23:Variable Net Exports

If imports are plotted on the vertical axis and disposable income on the horizontal axis, the import line

An increase in U.S. consumers' incomes will decrease U.S. exports.

If U.S. net exports are negative,

Subtracting the import function from the export function produces the net export function.

An increase in the value of the U.S. dollar relative to foreign currencies would lead to

Which of the following factors is not assumed constant along the U.S. net export function?

In 2007, the value of the dollar declined, which should have __________ exports, __________ imports, and shifted the net export function __________.

U.S. net exports will fall if

If one British pound originally exchanges for one U.S. dollar and then is revalued to exchange for two U.S. dollars, what should happen to U.S. net exports?

A decrease in the value of the U.S. dollar relative to foreign currencies would lead to a(n)

If imports increase as disposable income increases, economic growth will __________ net exports and contribute to a trade __________.

An increase in U.S. income would lead to

Which of the following statements regarding imports and exports is true?

A decrease in U.S. income would lead to a(n)

An increase in the value of the U.S. dollar relative to other currencies will increase U.S. imports.

A decrease in the value of the U.S. dollar relative to other currencies will increase U.S. exports.

U.S. economic growth does not contribute to a U.S. trade deficit.

Which of the following would shift the U.S. net export function downward?

Exhibit 9-4 -In Exhibit 9-4, which of the following will cause a shift from X-M to X*-M*?

If the U.S. economy were to go through a severe recession by itself (i.e., without it being contagious to the rest of the world), we would typically observe an increase in the U.S. trade deficit.