When the Average Price Level of a Country Rises, Which

question 83

Multiple Choice

When the average price level of a country rises, which of the following would NOT cause a drop in the total amount of the country's goods and services that would be purchased?

• A) The money that people hold will have less purchasing power than it had before the price level changed.
• B) A higher price level causes interest rates to rise, which causes purchases to fall for the kinds of items that typically are bought on credit.
• C) When the price level rises in country A but not in country B, citizens of country B will be less likely to import products from country A, leading to a reduction in country A's net exports.
• D) The higher price level leads to higher wages, which raise the costs of production for firms.

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Definitions:

Isthmus of Panama

A narrow strip of land connecting North and South America, significantly impacting ocean currents and global climate patterns, as well as migration of species.

Geographic Barrier

A physical or environmental feature that prevents the free movement of species, leading to genetic isolation and potentially speciation.

Allopatry

Occurs when populations are in separate, nonoverlapping geographic areas (that is, they are separated by geographic barriers to gene flow).

Horizontal Gene Transfer

The movement of genetic material between unicellular and/or multicellular organisms other than by the transmission of DNA from parent to offspring.