If a Consumer Buys Less Gasoline Because Gas Prices Decreased

question 80

Multiple Choice

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