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Loraine Loraine
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9 years ago
Aggregate demand ________ if the expected inflation rate increases because ________.
A) increases; people expect to receive cost of living raises as the inflation begins
B) decreases; people wait for the exchange rates to change before making purchases
C) does not change; inflation does not affect the aggregate demand curve
D) increases; people want to make purchases now before the price of goods and services begin to increase
E) decreases; people want to wait for the price of goods and services begin to decrease
Textbook 
Essential Foundations of Economics

Essential Foundations of Economics


Edition: 7th
Authors:
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Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
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SydnieSydnie
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9 years ago
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9 years ago
I was confident with my answer, glad it was correct.

Oh, and thumbs-up are more than welcome Slight Smile
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