Question

An increase in the U.S. price level can be caused by all of the following except A. increases in the security of U.S. jobs. B. worsening economic conditions in Asia. C. a tax decrease. D. lower U.S. interest rates.

Answer 1

B. worsening economic conditions in Asia.

Step-by-step explanation:

• An increase in the price levels of the U.S can lead to the worsening of the economic conditions in Asia as this can lead to the aggravate long-run supply and causes the price levels to increase. Thus inflation increase the nominal interest rates and reduces the aggregate quantity of the goods and services demanded.