Other things the same,as the price level falls,
A)the dollar depreciates.
B)the interest rate rises.
C)people feel less wealthy.
D)All of the above are correct.

Name: Other things the same,as the price level falls, A)the dollar depreciates. B)the interest rate rises. C)people feel less wealthy. D)All of the above are correct.
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Question

Quizplus · Accepted Answer

As the price level falls, the dollar depreciates because lower prices can lead to lower interest rates, making the currency less attractive to foreign investors.

Other Things the Same,as the Price Level Falls