Multiple Choice
Which statement best explains an increase in consumer spending?
A) People spend more when the price level rises because the dollars they hold are worth more.
B) People spend more when the price level rises because the dollars they hold are worth less.
C) People spend more when the price level falls because the dollars they hold are worth more.
D) People spend more when the price level falls because the dollars they hold are worth less.
Correct Answer:

Verified
Correct Answer:
Verified
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