Other Things Being Equal,an Exogenous Rise in the Domestic Price

question 29

Multiple Choice

Other things being equal,an exogenous rise in the domestic price level will

• A)have no effect on the level of desired real expenditure.
• B)increase the level of desired real expenditure.
• C)decrease desired real expenditure only if it is accompanied by a change in the current income of households.
• D)decrease desired real expenditure because it will affect the real value of wealth.
• E)cause net exports to rise.

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Definitions:

Fixed-Pie Bias

The misconception in negotiations that the 'pie' or total available benefit is fixed, leading to competitive rather than cooperative strategies.

Conflicts of Interest

Situations where an individual's or organization's private interests conflict with their professional duties or responsibilities, leading to potential bias or unethical decisions.

Intraorganizational Bargaining

The negotiating process within an organization aimed at resolving differences or aligning strategies between various stakeholders, such as management teams, departments, or divisions.

Constituency

The body of voters or supporters in a specified area who elect or back a representative, or the clients or customers served by an organization or institution.