As the Price Level Rises,the Exchange Rate

question 21

Multiple Choice

As the price level rises,the exchange rate

• A)falls,so exports rise and imports fall.
• B)falls,so exports fall and imports rise.
• C)rises,so exports rise and imports fall.
• D)rises,so exports fall and imports rise.

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Definitions:

Duress

Unlawful pressure exerted upon a person to coerce them into an action against their will, often making a contract voidable.

Undue Influence

An unfair manipulation by one person over another, often leading the influenced party to make decisions that are not in their best interest.

Affirming Contract

The act of formally agreeing to the terms of a contract, thereby making it legally binding.

Hadley v. Baxendale

A foundational English contract law case that established the rule regarding the recoverability of damages for breach of contract based on foreseeability.