Fill in the blanks in the following explanations: a. The real wealth effect is described by the

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Fill in the blanks in the following explanations:
a. The real wealth effect is described by the following: An increase in the price level leads to a(n) _____________ in real wealth, which leads to a(n) _____________ in purchasing power, which leads to a(n) _____________ in RGDP demanded.
b. The interest rate effect is described by the following: A decrease in the price level leads to a(n) _____________ in the interest rate, which leads to a(n) _____________ in investments, which leads to a(n) _____________ in RGDP demanded.
c. The open economy effect is described by the following: An increase in the price level leads to a(n) _____________ in the demand for domestic goods, which leads to a(n) _____________ in RGDP demanded.

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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