As we move along a planned expenditures line
A) price level falls.
B) price level fluctuates depending on whether the economy is expanding or contracting.
C) price level rises.
D) price level is held constant.
Question 2
Suppose that consumers expect that the price of a product will increase in the future. The result is that
A) the current supply of the product decreases. B) the current demand for the product decreases.
C) the current demand for the product increases. D) the current supply of the product increases.
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