Business, 23.06.2021 18:20 kiarasanchez17
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 assets rises, while the real value of assets remains
the same.
d. all of the above
Answers: 1
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The wealth effect refers to the fact that
a. when the price level falls, the real value of househol...
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