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The Term _____________ Describes a Situation Where a ________________ Causes

Question 28

Multiple Choice

The term _____________ describes a situation where a ________________ causes a reduction in the buying power of income, even though actual income has not changed.


A) substitution effect; lower price
B) intertemporal budget; higher price
C) income effect; higher price
D) intertemporal budget; lower price

Correct Answer:

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