The Real Balance Effect Works Through a Change in the Value

question 146

Multiple Choice

The real balance effect works through a change in the value of

• A) monetary assets in response to changes in the unemployment rate.
• B) nonmonetary assets in response to changes in the unemployment rate.
• C) monetary assets in response to changes in the price level.
• D) nonmonetary assets in response to changes in the price level.

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Definitions:

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Air Pump

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