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    Exam 22: Adding Government and Trade to the Simple Macro Model
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    A Fall in Domestic Prices Relative to Foreign Prices,other Things
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A Fall in Domestic Prices Relative to Foreign Prices,other Things

Question 10

Question 10

Multiple Choice

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

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