An increase in expected inflation is likely to cause
A. no change in the demand for real balances.
B. no change in the demand for real balances only if the income elasticity of real money demand is zero.
C. a decline in the demand for real balances.
D. an increase in the demand for real balances.
Answer: C
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A) increase export spending. B) increase investment spending. C) increase consumption spending. D) increase government spending.
A joint venture allows a foreign firm to easier adjust to a new market and often meet various institutional requirements
Indicate whether the statement is true or false
Real business cycle theorists think that most business cycle fluctuations are caused by shocks to
A) the production function. B) the size of the labor force. C) the real quantity of government purchases. D) the spending and saving decisions of consumers.
Differences in the applications of antitrust laws are in part rooted on the issue of how broadly antitrust authorities should define the relevant:
A. Market B. Product C. Price D. Firm