Suppose That M Is Fixed but That P Falls

question 115

Multiple Choice

Suppose that M is fixed but that P falls.According to the quantity equation which of the following could both by themselves explain the decrease in P?

• A)Y rose,V rose
• B)Y fell,V fell
• C)Y rose,V fell
• D)Y fell,V rose

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Definitions:

Tariffs

Taxes or duties to be paid on a particular class of imports or exports, used by governments to regulate trade.

Nontariff Barrier

Trade restrictions that don't involve tariffs, such as quotas, embargoes, or regulations, affecting the import or export of goods.

Arbitration

A form of alternative dispute resolution where an impartial third party, the arbitrator, makes a decision in a conflict that is binding on the parties involved.

Forum Selection Clause

A provision in a contract that specifies which court or jurisdiction will resolve any disputes that arise under the contract.