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

question 46

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 rise in the country's relative productivity causes its currency to ________.

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

---

Definitions:

Allegiance

Allegiance is a strong loyalty or commitment to a person, group, cause, or country, often demonstrated through support or adherence.

Political Campaigns

Organized efforts aimed at influencing the decision-making process of a specific group, particularly in elections to secure votes for candidates or policies.

Major Corporations

Large businesses that operate in multiple countries, often with considerable influence on the market and global economy.

Capitalism

Capitalism is an economic system characterized by private ownership of the means of production, where goods and services are produced for profit in a market economy.