When inflation occurs
A. money gains in value.
B. money loses value.
C. the value of money is unaffected.
D. the value of demand deposits falls but the value of currency is unaffected.
E. inflation has nothing to do with money.
B. money loses value.
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In the Keynesian cross diagram, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up, the equilibrium level of aggregate output to ________, and the IS curve to shift to the ________,
everything else held constant. A) rise; left B) rise; right C) fall; left D) fall; right
The inverse supply curve of coffee beans equals P = -5 - 2rain + Qs, where rain equals the number of inches of rain per year. How much does quantity supplied change when rain increases from 30 inches to 40 inches per year?
A) Qs decreases by 40. B) Qs increases by 40. C) Qs increases by 30. D) Qs decreases by 30.
An example of a good that creates a positive network externality is:
A. the telephone. B. social network websites (e.g. Facebook). C. a workers’ union. D. All of these are examples of good that create positive network externalities.
The major protection against sudden mass attempt to withdraw cash from banks is the:
a. Federal Reserve. b. deposit insurance provided by the FDIC. c. gold and silver backing the dollar. d. Consumer Protection Act.