When Domestic Prices Rise

question 89

Multiple Choice

When domestic prices rise

• A)the buying power of cash assets rises.
• B)interest sensitive consumption falls because interest rates rise.
• C)exports rise.
• D)business investment rises because interest rates fall.

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Definitions:

Graph of Equation

A visual representation of all the points that satisfy a given equation, plotted on a coordinate grid.

Method of Substitution

A technique used to solve systems of equations by solving one equation for one variable and then substituting that expression into another equation.

System of Equations

A set of two or more equations with the same set of unknowns, which are solved together to find a common solution.

Method of Substitution

A technique used to solve systems of equations where one equation is solved for one variable, which is then substituted into other equations.