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28 Nov 2020
The wealth effect refers to the fact that
A. when the price level falls, the real value of household wealth rises, and so will consumption.
B. when income rises, consumption rises.
C. when the price level falls, the nominal value of assetsrises, while the real value of assets remains the same.
D. All of the above.
The wealth effect refers to the fact that
A. when the price level falls, the real value of household wealth rises, and so will consumption.
B. when income rises, consumption rises.
C. when the price level falls, the nominal value of assetsrises, while the real value of assets remains the same.
D. All of the above.
Kristelle BalandoLv10
3 Jan 2021
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