Other Things Being Equal,an Exogenous Rise in the Domestic Price

question 29

Multiple Choice

Other things being equal,an exogenous rise in the domestic price level will

• A)have no effect on the level of desired real expenditure.
• B)increase the level of desired real expenditure.
• C)decrease desired real expenditure only if it is accompanied by a change in the current income of households.
• D)decrease desired real expenditure because it will affect the real value of wealth.
• E)cause net exports to rise.

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