Respuesta :
A decrease in foreign output would cause the domestic country's net exports to increase and cause the domestic country's net exports curve to shift up.
Given an incomplete sentence related to a country's net exports.
We are required to fill the sentence with appropriate words,
Export means sale of domestic products to another country. Nwt exports means the difference between exports and imports.
Net Exports=Exports-Imports.
When there is decrease in foreign output, it results in decrease in supply in foreign markets with same demand. So foreign people will now buy products from the domestic country. So the domestic country's net exports will increase and because the domestic country's net exports curve will shift upwards.
Hence a decrease in foreign output would cause the domestic country's net exports to increase and cause the domestic country's net exports curve to shift up.
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