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    Survey of Economics
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    Exam 14: Aggregate Demand and Supply
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    The Real Balances Effect Occurs Because a Higher Price Level
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The Real Balances Effect Occurs Because a Higher Price Level

Question 31

Question 31

Multiple Choice

The real balances effect occurs because a higher price level will reduce the real value of people's:


A) financial assets.
B) wages.
C) unpaid debt.
D) physical investments.

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