Question

 Which of the following directly influence the level of demand for exports?
 
A. The level of domestic national income
B. The level of domestic national income, and the level of national income in other countries
C. The level of domestic national income, and the exchange rate
D. The level of national income in other countries, and the exchange rate
E. The level of domestic national income, the level of national income in other countries, and the exchange rates

Answer 1

E is the correct answer

export depends on the income of domestic people, income of foreign people and the exchange rate.

Xs=(Y Y* e)

when there is depreciation of the currency, export increases. and when there is appreceation of the currency, export decreases.

when the income of foreign people increases then export increases because demand for domestic goods increases.

when the income of domestic people increases then export decreases because increase in the demand in the domestic country makes some exporters to switch from world market to domestic market.