When the central bank increases the monetary base, the purchasing power of previously existing currency ________, and this essentially transfers wealth ________
A) increases; from those who own existing currency to the government
B) decreases; from those who own existing currency to the government
C) increases; from the government to those who own existing currency
D) decreases; from the government to those who own existing currency
B
You might also like to view...
Unless goods are Giffen goods, own-price elasticities of demand are always negative.
Answer the following statement true (T) or false (F)
Recent tests suggest that the Leontief Paradox has been completely resolved
Indicate whether the statement is true or false
If interest rates in Sweden go up relative to the rest of the world, the
A) demand for Swedish currency will fall. B) demand for Swedish currency will rise. C) supply of Swedish currency will fall. D) supply of Swedish currency will rise.
Success of communication depends on what 3 things?
What will be an ideal response?