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-In the Above Figure, the Economy Is Initially at Point

Question 14

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  -In the above figure, the economy is initially at point C. Then the domestic price level rises by 10. A A) wealth effect would help move the economy to point B. B) substitution effect would keep the economy at point C. C) substitution effect would help move the economy to point B. D) substitution effect would help move the economy to point D.
-In the above figure, the economy is initially at point C. Then the domestic price level rises by 10. A


A) wealth effect would help move the economy to point B.
B) substitution effect would keep the economy at point C.
C) substitution effect would help move the economy to point B.
D) substitution effect would help move the economy to point D.

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