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According to the Real Balances Effect,when the Price Level

Question 7

Multiple Choice

According to the real balances effect,when the price level:


A) Falls,cash is worth less and therefore people buy less.
B) Falls,cash is worth more and therefore people buy more.
C) Rises,cash is worth less and therefore people buy more.
D) Rises,cash is worth more and therefore people buy less.

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