Expectations of a future general price increase will lead to a higher level of equilibrium expenditures.

Name: Expectations of a future general price increase will lead to a higher level of equilibrium expenditures.
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Question

Quizplus · Accepted Answer

If people expect prices to increase in the future, they may choose to purchase goods and services sooner rather than later in order to avoid paying higher prices in the future. This would lead to a higher level of equilibrium expenditures.

Expectations of a Future General Price Increase Will Lead to a Higher