In an Open Economy,as the Price Level Increases,what Is the Impact

question 112

Multiple Choice

In an open economy,as the price level increases,what is the impact on the demand for domestic goods and the quantity of real GDP demanded?

• A)The demand for domestic goods will increase, resulting in an increase in the quantity of real GDP demanded.
• B)The demand for domestic goods will increase, resulting in a decrease in the quantity of real GDP demanded.
• C)The demand for domestic goods will decrease, resulting in an increase in the quantity of real GDP demanded.
• D)The demand for domestic goods will decrease, resulting in a decrease in the quantity of real GDP demanded.

---

Definitions:

Linear Perspective

A system of creating an illusion of depth on a flat surface, wherein parallel lines converge at a single point known as the vanishing point.

Motion Parallax

A technique of depth perception where objects closer to the viewer move faster across the visual field than objects further away.

Monocular

Pertaining to or concerning solely one eye.

Binocular

Relating to, used by, or involving both eyes at the same time for obtaining visual perception.