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An Increase in the Inflation Rate Results in ________ in the Quantity

Question 3

Multiple Choice

An increase in the inflation rate results in ________ in the quantity of real GDP demanded because a higher price level ________.


A) an increase; increases consumption and investment
B) a decrease; increases consumption and investment
C) a decrease; reduces consumption and investment
D) an increase; reduces consumption and investment

Correct Answer:

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