In an Open Economy, as the Price Level Increases, the Quantity

question 60

Multiple Choice

In an open economy, as the price level increases, the quantity demanded of domestic goods _____, resulting in a(n) _____ in the quantity of real GDP demanded.

• A)increases; decrease​
• B)increases; increase
• C)decreases; decrease
• D)decreases; increase
• E)remains constant; increase

---

Definitions:

Financial Futures Contracts

Agreements to buy or sell a financial instrument at a future date for a price agreed upon today.

DAX 30 Index

A stock market index that represents 30 of the largest and most liquid German companies trading on the Frankfurt Stock Exchange.

CAC 40 Index

A benchmark French stock market index that represents the 40 largest equities listed in France, measuring their performance.

Toronto 35 Index

An index that was once used to represent the performance of the 35 most significant stocks listed on the Toronto Stock Exchange.