In an Open Economy as the Price Level Decreases,what Is

question 165

Multiple Choice

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

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

Gradually

In a slow, step-by-step process, often used to describe how changes or developments occur over time.

Approach-avoidance Conflict

A psychological conflict that occurs when a goal or event has both attractive and unattractive aspects, leading to ambivalence about pursuing it.

Lesser Of Two Evils

A choice between two undesirable options, where the chosen option is seen as the less harmful or problematic one.

Latin Root

The base of a word derived from Latin, from which the meaning and words in many modern languages are formed.