Flashcards
Net exports and AD
Cards in this deck (7)
- 1What are net exports part of?The current account on the Balance of Payments
- 2What are net exports?Exports - Imports
- 3What are factors that affect net exports?(4)Exchange rates
Intrest rates
Prices
World and UK income - 4Why would Exchange rates affect net exports?If an exchange rate changes then it may make the price of imports or exports change
- 5Why would Interest rates affect net exports?If interest raes change, this can ultimately affect the exchange rate
- 6Why would Prices affect net exports?General prices of imports and exports change over time
If prices of exportable goods go up (manufactured in the UK) then the export level ma fall
Vice versa (i.e. china manufacturing goods) - 7Why would world and UK income affect net exports?If world incomes rise then our exports should go up due to an increase in demand from other countries
If our incomes goes up we many demand more imports which could wipe out the net export gains
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- A-Level Economics Macrp (AD) Flashcards on Net exports and AD , created by Maya Khangura on 23/02/2016.
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- Maya Khangura
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