The _____________ holds that a rise in price level will make domestic goods relatively more expensive, ____________ exports and _______________ imports.
A. interest rate effect; encouraging; discouraging
B. employment effect; discouraging; encouraging
C. wealth effect; encouraging; discouraging
D. foreign price effect; discouraging; encouraging
Answer:D
The _____________ holds that a rise in price level will make domestic goods relatively more expensive, ____________ exports and _______________ imports.
A. interest rate effect; encouraging; discouraging B. employment effect; discouraging; encouraging C. wealth effect; encouraging; discouraging D. foreign price effect; discouraging; encouraging
Explanation: Type: Multiple Choice