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Question
If you have $5000 and the GDP deflator decreases from 100 to 80
A) the $5000 will buy 20 percent less of the goods and services produced by society.
B) the $5000 will buy 20 percent more of the goods and services produced by society.
C) the value of the $5000 decreases.
D) the value of the $5000 remains constant.
Answer
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