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Economics (AS & A Level) · Oct / Nov 2025 · Paper 13 · Question 20

9708Price stability

What might be a consequence of a fall in the domestic price level?

  1. Aimports become more competitive
  2. Binterest rates increase
  3. Cthe purchasing power of savings falls
  4. Dthe real value of incomes increases

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Correct answer: D. the real value of incomes increases

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