Which of the following is a macro consequence of a sudden increase in the average level of prices?

A. People lengthen their time horizons.
B. Nominal income falls by a smaller percentage than real income.
C. People on fixed incomes benefit.
D. Uncertainty is greater.

Answer: D

Economics

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For a normal good, if incomes rise, we would expect that the equilibrium price will increase and that the equilibrium quantity will increase

a. True b. False Indicate whether the statement is true or false

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