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Suppose You Were to Believe That "Money Illusion" Exists That

Question 12

Multiple Choice

Suppose you were to believe that "money illusion" exists that is as prices and incomes both rise proportionally,people buy more.Which of the following characteristics of demand does that cause you to doubt?


A) demand functions are downward sloping
B) demand has a positive vertical intercept
C) demand has a positive horizontal intercept.
D) demand functions are homogeneous of degree zero.

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