Question

As the aggregate price level falls, the number of domestic products purchased by foreigners will [rise], causing the quantity of domestic output demanded to [rise]. This is known as the [foreign purchases effect].

The first two blanks can be rise,fall or stay the same.
and the last one can be interest-rate or real-balances...

THANKS!

Answer 1

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Answer 2

As the aggregate price level falls, the number of domestic products purchased by foreigners will [rise], causing the quantity of domestic output demanded to [rise]. This is known as the [International trade].