AP Macroeconomics Question 127: Answer and Explanation
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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