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In the Basic 45-Degree Line Model, What Is the Effect

Question 127

Multiple Choice

In the basic 45-degree line model, what is the effect of an increase in the price level?


A) There will be movement to the left on the expenditure line.
B) There will be movement to the right on the expenditure line.
C) The expenditure line will shift downward.
D) The expenditure line will shift upward.

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