Other things being equal,what is the effect of an exogenous rise in the domestic price level?
A)a decrease in real saving
B)a decrease in the real value of all assets denominated in money units
C)domestic goods become more attractive to foreigners
D)foreign goods become less attractive to domestic residents
E)an increase in the real burden of repaying a fixed money value debt

Question

Quizplus · Accepted Answer

An exogenous rise in the domestic price level decreases the real value of assets denominated in money units because the purchasing power of money decreases.

Other Things Being Equal,what Is the Effect of an Exogenous