Multiple Choice
Jacob buys less soda when the price of soda rises 10 percent, while the prices of all other goods also rise 10 percent. Jacob is
A) suffering from money illusion.
B) worrying too much about a coming recession.
C) behaving in accordance with classical economic theory.
D) paying too much attention to changes in relative prices.
Correct Answer:
Verified
Correct Answer:
Verified
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