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The Three Reasons That the Economy-Wide Price Level and the Level

Question 2

Multiple Choice

The three reasons that the economy-wide price level and the level of real GDP move in opposite directions are


A) the Pigou effect, the foreign trade effect, and the real savings effect.
B) the foreign trade effect, Keynes's interest rate effect, and the price effect.
C) the Pigou effect, Keynes's interest rate effect, and the foreign trade effect.
D) the foreign trade effect, the government intervention effect, and the real savings effect.

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