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When the Inflation Rate Decreases, PAE ______, Which in Turn

Question 79

Multiple Choice

When the inflation rate decreases, PAE ______, which in turn causes Y to ______ because of ______.


A) rises; rise; the income-expenditure multiplier
B) rises; fall; the income-expenditure multiplier
C) falls; rise; the wealth effect
D) falls; fall; the wealth effect

Correct Answer:

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