Other Things the Same,an Increase in the Price Level Causes

question 6

Multiple Choice

Other things the same,an increase in the price level causes the interest rate to

• A)increase,the dollar to depreciate,and net exports to increase.
• B)increase,the dollar to appreciate,and net exports to decrease.
• C)decrease,the dollar to depreciate,and net exports to increase.
• D)decrease,the dollar to appreciate,and net exports to decrease.

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Definitions:

Domestic Price

The price of goods or services within a country's own market, as opposed to international prices.

World Price

The international market price of a good or service, influenced by global supply and demand.

Trade

The exchange of goods, services, or both between parties, which can be within an economy or between economies.

Tariff

A tax imposed on imported goods and services to either protect domestic industries from foreign competition or generate revenue.