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If You Have $5,000 in Wealth and the Price Level

Question 178

Multiple Choice

If you have $5,000 in wealth and the price level decreases by 20 percent, then


A) the $5,000 will buy fewer goods and services.
B) the $5,000 will buy more goods and services.
C) the real value of the $5,000 decreases.
D) the real value of the $5,000 remains constant.

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