If a Consumer Buys Less Gasoline Because Gas Prices Increased

question 21

Multiple Choice

If a consumer buys less gasoline because gas prices increased by 10 percent, even though all other prices have also increased by 10 percent, then

• A) the consumer is paying too close attention to changes in relative prices.
• B) wages and prices are too flexible.
• C) the consumer has been fooled by money illusion.
• D) inflation is not a problem in the economy.

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Definitions:

Proving Fraud

The process of establishing the intentional deception made by one party in order to gain an unfair advantage over another, which often involves legal proceedings.

Innocent Party

An individual or entity that is not at fault or involved in wrongdoing, especially in a legal context.

Fraud

A wrongful or criminal deception intended to result in financial or personal gain.

Authenticity

The quality of being genuine, original, or not a copy, often verified through evidence or certification.