Which of the Following Is Incorrect

question 280

Multiple Choice

Which of the following is incorrect?

• A) As the U.S. price level rises, U.S. goods become relatively more expensive so that U.S. exports fall and U.S. imports rise.
• B) As the price level falls, the demand for money declines, the interest rate declines, and interest-rate-sensitive spending increases.
• C) When the price level increases, real balances increase and businesses and households find themselves wealthier and therefore increase their spending.
• D) Given aggregate demand, an increase in aggregate supply increases real output and, assuming downward-flexible prices, reduces the price level.

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Definitions:

Revolutionary

Relating to or involving a drastic and significant change, especially in ideas, methods, or structure.

Raw Materials

The basic substances used in the production of goods, often extracted from the earth.

Custom Made

Products or services specifically tailored to meet the individual needs or preferences of a client.

Raw Materials

The fundamental substances used in the production of goods, typically natural resources or agricultural products.