44514
Net Exports
- Real Disposable
Income Abroad
- A rise would increase exports
- A rise would increase exports
- Real Disposable
Income at Home
- A rise would decrease
exports-firms divert products from
export market to home market
- A rise would decrease
exports-firms divert products from
export market to home market
- Domestic Inflation Rate
- If rate is higher than other countries,
exports fall and imports rise
- Products in other
countries are cheaper
- Products in other
countries are cheaper
- If rate is higher than other countries,
exports fall and imports rise
- Exchange Rate
- Fall in ER would reduce price of
exports and increase price of imports
- Fall in ER would reduce price of
exports and increase price of imports
- Government Restrictions on Free Trade
- Exports would rise if government
remove trade restrictions
- Lowering tariffs would
lower the price of exports
- Lowering tariffs would
lower the price of exports
- Exports would rise if government
remove trade restrictions
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