Business, 16.10.2019 01:20 milagritomiracle

The real-balances effect indicates that:
a. an increase in the price level will increase the demand for money, increase interest rates, and reduce consumption and investment spending.
b. a lower price level will decrease the real value of many financial assets and therefore reduce spending.
c. a higher price level will increase the real value of many financial assets and therefore increase spending.
d. a higher price level will decrease the real value of many financial assets and therefore reduce spending.

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The real-balances effect indicates that:
a. an increase in the price level will increase the...

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