Question: This question is based on the following diagrams, representing the construction of the net exports (NX) curve. Which one of the following statements is correct?
This question is based on the following diagrams, representing the construction of the net exports (NX) curve. Which one of the following statements is correct? Select one: A. A trade surplus occurs at all points to the right of the trade balance position since exports are higher than imports. B. Since exports depend on foreign income, the distance between curve AA and ZZ will be constant. C. The NX line represents the relation between imports, exports and the exchange rate. D. At output level Y, the distance AC represents exports and distance AB represents net exports
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