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A Decrease in the Price Level in an Economy Implies

Question 138

Multiple Choice

A decrease in the price level in an economy implies that _____.


A) the spending multiplier will be equal to the marginal propensity to consume
B) there will be an increase in investment
C) there will be a decrease in investment
D) the value of the spending multiplier will be equal to one
E) the value of the spending multiplier will be equal to zero

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