What Are the Effects of an Increase in the Price

question 2

Multiple Choice

What are the effects of an increase in the price level?

• A) The interest rate increases, the dollar depreciates, and net exports increase.
• B) The interest rate increases, the dollar appreciates, and net exports decrease.
• C) The interest rate decreases, the dollar depreciates, and net exports increase.
• D) The interest rate decreases, the dollar appreciates, and net exports decrease.

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Definitions:

Hypothesis

Hypothesis is a proposed explanation or assumption for a phenomenon, made as a starting point for further investigation or experimentation.

Sample Frame

The list or database from which a sample is drawn for a research study, representing the larger population of interest.

Approximates Population

An estimate of the number of individuals within a certain demographic or geographic area.

Draw a Sample

The process of selecting a subset of individuals from a population to represent the whole, usually in the context of statistical analysis or research.