In the Long Run,a Rise in a Country's Price Level

question 28

Multiple Choice

In the long run,a rise in a country's price level (relative to the foreign price level) causes its currency to ________,while a fall in the country's relative price level causes its currency to ________.

• A)appreciate;appreciate
• B)appreciate;depreciate
• C)depreciate;appreciate
• D)depreciate;depreciate

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Definitions:

Government Functions

Activities and roles undertaken by government entities, including legislating, regulating, taxation, and providing public goods and services.

Special-Interest Effect

The impact or influence of special interest groups on policy-making processes, often aimed at obtaining favorable regulations or benefits for their members.

Economic Losses

The reduction in economic value due to factors such as poor investment decisions, natural disasters, or inadequate demand for goods and services.

Economic Gains

Increases in wealth or resources, often measured in terms of profit or improved well-being resulting from economic activities.