As the Price Level Falls

question 112

Multiple Choice

As the price level falls,

• 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:

Income

Earnings received by an individual or organization, often measured as net or gross, including wages, investment returns, and other sources.

Wealth

The total value of all financial and non-financial assets owned by an individual, community, company, or country, minus any liabilities.

Corporate Form

A legal structure of organization designated to conduct business, which can limit the liability of shareholders and associates with various tax rules.

Taxes

Mandatory financial charges imposed by governments on individuals, corporations, and transactions.