Other Things Being Equal,when the Domestic Price Level Falls Exogenously

question 123

Multiple Choice

Other things being equal,when the domestic price level falls exogenously,

• A)Canadian goods become more expensive relative to foreign goods.
• B)the net export function shifts upward.
• C)the aggregate expenditure function shifts downward.
• D)imports of foreign goods rise.
• E)the net export function shifts downward.

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Definitions:

Maturity Value

The amount of money that an investment will grow to at the end of its investment period.

Compounded Monthly

Interest on an investment or loan calculated each month and added to the balance, so that subsequent interest calculations include interest on the previous interest.

Receivable Contract

An agreement where one party has the right to receive a payment or series of payments from another party.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.