An Increase in the Price Level Causes the Interest Rate

question 75

Multiple Choice

An increase in the price level causes the interest rate to

• A)increase, the dollar to depreciate, and net exports to increase.
• B)increase, the dollar to appreciate, and net exports to decrease.
• C)decrease, the dollar to depreciate, and net exports to increase.
• D)decrease, the dollar to appreciate, and net exports to decrease.

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Definitions:

Double-Entry Bookkeeping System

Bookkeeping system that has two notable characteristics: each transaction is recorded in two accounts and each account has two columns. In this system, two entries are made for each transaction: one entry as a debit in an account and one entry as a credit in another account.

Trial Balance

(1) Bookkeeping strategy to confirm accuracy in debits and credits in ledger; (2) A balance sheet reports the assets, liabilities, and stockholders’ equity of a business enterprise at a specific date.

Garbage In, Garbage Out

A principle in computing and data analysis that emphasizes the importance of quality input data to produce meaningful output or results.

Trial Balance

An accounting report that lists the balances of all ledgers in two columns (debits and credits) to ensure they are equal.