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In the Land of Funny Money, every price, wage and bank balance rose 20% overnight. The real effect was:

AEveryone richer
BMass unemployment
CNo economic impact
DEveryone poorer
Answer & Solution
Correct answer: C. No economic impact
1. Pay still bought the same goods. 2. There was no economic impact. 3. Real problems arise when things adjust unevenly. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 8, Inflation (CC BY 4.0)._
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