An Indirect Effect of a Decrease in the Price Level

question 92

Multiple Choice

An indirect effect of a decrease in the price level works through

• A)people substituting out of domestic goods and into foreign goods as exchange rates rise.
• B)changes in trade balances as domestic goods become more expensive,causing interest rates to move in the opposite direction from the change in the exchange rate.
• C)interest rates as people save more as the higher prices make their money balances less attractive.
• D)interest rates,increasing the quantity demanded for goods and services.

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Definitions:

PLCs

Acronym for Programmable Logic Controllers, which are industrial digital computers designed for the automation of electromechanical processes.

CLX Controller

A type of programmable logic controller designed by Rockwell Automation, known for its scalability and performance in industrial automation systems.

Internal Memory Organization

Describes how a computer or device internally arranges its memory, including the allocation and management of memory spaces for optimizing performance.