As the Price Level Rises

question 139

Multiple Choice

As the price level rises,

• A)the exchange rate falls,so net exports fall.
• B)the exchange rate falls,so net exports rise.
• C)the exchange rate rises,so net exports fall.
• D)the exchange rate rises,so net exports rise.

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Definitions:

Price Discrimination

The strategy of selling the same product or service at different prices to different customers, often based on the willingness to pay, market segment, or purchase volume.

Conditions

The circumstances or criteria affecting the operation of markets or the status of economic factors.

Price Elasticity

The measure of how much the quantity demanded of a good or service changes in response to a change in its price.

Demand

Pertains to the amount of a good or service that buyers are prepared and capable of buying at different price levels over a specified time frame.