Which of the Following Is Incorrect

question 85

Multiple Choice

Which of the following is incorrect?

• A)As the Canadian price level rises, Canadian goods become relatively more expensive so that its exports fall and its imports rise.
• B)As the price level falls, the demand for money declines, the interest rate declines, and interest rate-sensitive spending increases.
• C)When the price level increases, real balances increase, businesses and households find themselves wealthier and therefore increase their spending.
• D)Given aggregate demand, an increase in aggregate supply increases real output and, assuming downward flexible prices, reduces the price level.

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Definitions:

US Annexation

The process by which the United States incorporated and claimed sovereignty over new territories, often after conquest or negotiation.

McKinley Tariff

A significant piece of legislation passed in 1890 that raised protective tariff levels of nearly 50% on average, aimed at protecting domestic industries in the United States.

Sanford B Dole

A political leader and jurist in Hawaii who played a key role in the overthrow of the Hawaiian monarchy and served as President of the Republic of Hawaii.

Queen Of Hawaii

Refers to Liliʻuokalani, the last sovereign monarch of the Hawaiian Kingdom, who was overthrown by parties backed by the United States government in 1893.