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Ceteris Paribus,if Average Prices in the U

Question 35

Multiple Choice

Ceteris paribus,if average prices in the U.S.economy fall,then the


A) Real balances effect will lead to a lower quantity of U.S.output demanded.
B) Foreign trade effect will lead to a lower quantity of U.S.output demanded.
C) Interest rate effect will lead to a higher quantity of U.S.output demanded.
D) Cost effect will lead to a higher quantity of U.S.output demanded.

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