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The Martinez Household Has $40,000 in Savings to Cover Some

Question 80

Multiple Choice

The Martinez household has $40,000 in savings to cover some upcoming expenses. As the average price level rises, their savings allow the Martinez family to make fewer purchases. Economists refer to this impact on the value of financial assets as the _____ effect.


A) real value
B) price level
C) money illusion
D) wealth

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