Which of the Following Best Describes What Happens When the Price

question 45

Multiple Choice

Which of the following best describes what happens when the price level falls?

• A)Households increase foreign bond purchases, and the supply of dollars increases.
• B)Households increase foreign bond purchases, and the supply of dollars decreases.
• C)Households decrease foreign bond purchases, and the supply of dollars increases.
• D)Households decrease foreign bond purchases, and the supply of dollars decreases.