Question 1. The _____________ holds that a rise in price level will make domestic goods relatively more expensive, ____________ exports and _______________ imports. a) employment effect; discouraging; encouraging b) interest rate effect; encouraging; discouraging c) wealth effect; encouraging; discouraging d) foreign price effect; discouraging; encouraging

Question 1. The _____________ holds that a rise in price level will make domestic goods relatively more expensive, ____________ exports and _______________ imports.
a) employment effect; discouraging; encouraging
b) interest rate effect; encouraging; discouraging
c) wealth effect; encouraging; discouraging
d) foreign price effect; discouraging; encouraging

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