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

Question 36

Multiple Choice

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


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

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