In the Long Run,a Rise in a Country's Price Level

question 28

Multiple Choice

In the long run,a rise in a country's price level (relative to the foreign price level) causes its currency to ________,while a fall in the country's relative price level causes its currency to ________.

• A)appreciate;appreciate
• B)appreciate;depreciate
• C)depreciate;appreciate
• D)depreciate;depreciate

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Definitions:

Planning Budget

A budget that outlines the income, expenses, and goals of a company or project within a specific time period, serving as a financial roadmap.

Selling

The process of persuading potential buyers to purchase a product or service.

Administrative Expenses

Costs associated with the general administration of a business, such as salaries of executive officers, legal and professional fees.

Flexible Budget

A budget designed to change in response to variations in volume or activity levels.