Other Things Being Equal,what Is the Effect of an Exogenous

question 27

Multiple Choice

Other things being equal,what is the effect of an exogenous rise in the domestic price level?

• A)a decrease in real saving
• B)a decrease in the real value of all assets denominated in money units
• C)domestic goods become more attractive to foreigners
• D)foreign goods become less attractive to domestic residents
• E)an increase in the real burden of repaying a fixed money value debt

---

Definitions:

Bankruptcy

A legal process by which individuals or entities who cannot repay debts to creditors may seek relief from some or all of their debts.

Discharge

The termination of an obligation, such as a contractual duty or a financial debt, usually upon the completion of the terms agreed upon.

Preprinted Promissory Note

A written, standardized promise to pay a specified amount of money on demand or at a defined time, with predefined terms.

Due Date

The specified day by which an obligation must be fulfilled or a task completed.