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Select all of the following factors which can cause net exports to change.
Multiple select question.

Changes in exchange rates

Changes in price level

Changes in interest rates

Changes in national income abroad

1 answer

All of the following factors can cause net exports to change:

  1. Changes in exchange rates - Fluctuations in the value of a country's currency can affect the cost of exports and imports, influencing net exports.

  2. Changes in price level - Variations in the domestic price level compared to foreign price levels can impact competitiveness and affect net exports.

  3. Changes in interest rates - Changes in interest rates can influence investment, savings, and consumption, thereby affecting imports and exports.

  4. Changes in national income abroad - When national income in other countries changes, it can affect their demand for a country's exports, thereby influencing net exports.

So, all options are correct.