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During an Economic Expansion as Consumer Incomes Rise, Holding Everything

Question 63

Multiple Choice

During an economic expansion as consumer incomes rise, holding everything else constant,


A) the demand for most goods, except luxuries, will rise.
B) the demand for luxuries will rise while the demand for inferior goods will fall.
C) the demand for luxuries and inferior goods will rise.
D) the prices of luxuries will fall while the prices of inferior goods will rise.

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