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When the Price Level Increases (Everything Else Remaining the Same)

Question 35

Multiple Choice

When the price level increases (everything else remaining the same) , the quantity of goods and services demanded, represented by RGDP:


A) increases because people substitute future consumption for present consumption.
B) increases because people reduce their savings to restore their purchasing power.
C) decreases because people substitute present consumption for future consumption.
D) decreases because people increase their savings to restore their wealth.

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