The real balances effect occurs because a higher price level will reduce the real value of people's:

a. financial assets.
b. wages.
c. unpaid debt.
d. physical investments.

a

Economics

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a. is the most commonly used market-based instrument internationally b. is sometimes implemented as an effluent charge to protect water resources c. can be used to control noise pollution d. all of the above e. none of the above

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