Illustrate the effect of a decrease in the value of currency


Problem

In the diagram, sketch an autonomous net export function showing the U.S. economy with a trade balance of $250 billion. Illustrate how a decrease in the value of the U.S. dollar could lead to a positive trade balance. Then illustrate the effect of a decrease in the value of the currency of a major trading partner.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Illustrate the effect of a decrease in the value of currency
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