In a Fixed Exchange Rate Regime,an Increase in the Price

question 13

Multiple Choice

In a fixed exchange rate regime,an increase in the price level will cause which of the following?

• A)a real appreciation and a leftward shift in the aggregate demand curve
• B)a real appreciation and no shift in the aggregate demand curve
• C)a real depreciation and a rightward shift in the aggregate demand curve
• D)a real depreciation and no shift in the aggregate demand curve
• E) no change in the real exchange rate, and no change in aggregate demand

---

Definitions:

Procedures

A series of actions conducted in a certain order or manner to achieve a result or carry out a task.

Random Assignment

Process of assigning subjects to the experimental or control groups randomly, so that each subject has an equal chance of being in either group.

Equal Chance

The principle that all participants or elements in a given situation have the same likelihood or opportunity of experiencing a certain outcome.

Independent Variable

The factor or condition that researchers intentionally change to study its impact on an outcome.