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Other Things Being Equal,what Is the Effect of an Exogenous

Question 82

Multiple Choice

Other things being equal,what is the effect of an exogenous rise in the domestic price level? There will be


A) no effect on the level of desired real expenditure.
B) an increase in the level of desired real expenditure.
C) a decrease in desired real expenditure only if it is accompanied by a change in the current income of households.
D) a decrease in desired real expenditure because it will affect the real value of wealth.
E) an increase in net exports.

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