If the Price Level Increases,then

Multiple Choice

If the price level increases,then

A) the exchange rate will increase,causing Canadian goods to become cheaper and increasing the quantity demanded for domestic goods.
B) imports increase but exports do not change.Therefore,there is no effect on the quantity demanded for goods and services.
C) foreigners buy fewer Canadian goods,leaving more goods for Canadians and an increase in the quantity demanded for goods and services produced domestically.
D) domestic goods are more expensive relative to foreign goods,which reduces quantity demanded for domestic goods.