AP Macroeconomics Question 127: Answer and Explanation

Test Information

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Question: 127

11. Rising prices are a problem because

  • A. money in household savings accounts can now buy fewer goods and services.
  • B. household incomes generally do not rise with prices.
  • C. the economy could run out of money.
  • D. borrowers have to repay loans with more dollars.
  • E. households are encouraged to save more.

Correct Answer: A

Explanation:

(A)