Increases in the price level will A raise consumption because real wealth

Increases in the price level will a raise consumption

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47) Increases in the price level will A) raise consumption because real wealth increases.B) lower consumption because real wealth decreases.C) raise consumption because some goods and services are more affordable.D) lower consumption because goods and services are less affordable.Answer: B 47) Diff: 2 Page Ref: 756/382 Topic: The Price Level Learning Outcome: Macro 8: Investigate the relationship between income and expenditures AACSB: Reflective Thinking 48) Which of the following will reduce consumer expenditures? 48) Diff: 3 Page Ref: 756/382 Topic: Expected Future Income Learning Outcome: Macro 8: Investigate the relationship between income and expenditures AACSB: Reflective Thinking 49) The consumption function describes the relationship between 49) Diff: 1 Page Ref: 757/383 Topic: The Consumption Function Learning Outcome: Macro 8: Investigate the relationship between income and expenditures AACSB: Reflective Thinking 50) The change in consumption divided by the change in disposable income is equal to 50) Diff: 1 Page Ref: 757/383 Topic: The Consumption Function Learning Outcome: Macro 8: Investigate the relationship between income and expenditures AACSB: Reflective Thinking
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