A Decrease in the Price Level Will Lead to

question 17

Multiple Choice

A decrease in the price level will lead to

• A)a decrease in the real interest rate and an increase in net exports.
• B)an increase in the real interest rate and an increase in net exports.
• C)a decrease in the real interest rate and a decrease in net exports.
• D)an increase in the real interest rate and a decrease in net exports.

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Definitions:

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.

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A numerical or alphabetical indication of the fitting size of a shoe for a person.

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The highest degree or stage of formal learning or schooling that an individual has completed.