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The Pigou Effect Refers to the Fact That Autonomous Expenditures

Question 23

Multiple Choice

The Pigou effect refers to the fact that autonomous expenditures may depend on


A) interest rates and variations in the perceived value of money balances.
B) the real money supply and variations in the perceived value of money balances.
C) income and variations in the perceived value of money balances.
D) taxes and variations in the perceived value of money balances.

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