What Are the Effects of an Increase in the Price

question 2

Multiple Choice

What are the effects of an increase in the price level?

• A) The interest rate increases, the dollar depreciates, and net exports increase.
• B) The interest rate increases, the dollar appreciates, and net exports decrease.
• C) The interest rate decreases, the dollar depreciates, and net exports increase.
• D) The interest rate decreases, the dollar appreciates, and net exports decrease.

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Definitions:

Comparative Advantages

The ability of an entity to produce goods or services at a lower opportunity cost than others.

Chronological

Organized in order of time, typically from the earliest to the most recent.

Oral Style

The manner of expressing spoken words, often distinct in its informality and directness compared to written style.

Written Style

The distinct approach or method an author uses in their writing, embodying their voice, tone, and technique.