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:

Criterion Variable

The variable that is predicted or explained in a study, often considered the outcome or dependent variable.

Latent Class Analysis

A statistical method used to identify subgroups within a population that share certain characteristics, without these groups being previously known.

Uncertainty Avoidance

A cultural dimension that reflects the degree to which societies tolerate ambiguity and uncertainty.

Return Rate

The percentage of participants who continue or complete a study or respond to follow-up surveys, crucial for the validity of research findings.