The real wealth effect is described

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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.

Reference no: EM13995247

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