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What Does the Income Effect Refer To

Question 5

Multiple Choice

What does the income effect refer to?  


A)  the effect of a change in income on the price of a good 
B)  the effect of a change in the general price level caused by a change in the price of another good 
C)  the effect of a change in the price of a good on real income 
D)  the effect of a change in the price of a substitute for the good under consideration

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