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Suppose There Is an Exogenous Increase in the Domestic Price

Question 3

Multiple Choice

Suppose there is an exogenous increase in the domestic price level.Which of the individuals listed below would experience an increase in wealth?


A) a person with a 25-year home mortgage
B) a person with cash under the mattress
C) a person with deposits in a bank savings account
D) a person with a government bond that promises to pay the holder $1000,5 years hence
E) a person with a corporate bond that promises to repay the face value of the bond in the future

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