Chapter 9: Problem 13
Draw a diagram and illustrate the effects of the following on the net exports function for the United States: a. The French government imposes restrictions on French imports of U.S. goods. b. The U.S. national income rises. c. Foreign income falls. d. The dollar depreciates on the foreign exchange market. Why is the slope of the \(C+I+G\) function different from the slope of the \(C+I+G+X\) function?