Ceteris Paribus,if Average Prices in the U

question 35

Multiple Choice

Ceteris paribus,if average prices in the U.S.economy fall,then the

• A)Real balances effect will lead to a lower quantity of U.S.output demanded.
• B)Foreign trade effect will lead to a lower quantity of U.S.output demanded.
• C)Interest rate effect will lead to a higher quantity of U.S.output demanded.
• D)Cost effect will lead to a higher quantity of U.S.output demanded.

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