If wages and prices are flexible, then an anticipated change in the money supply will cause wages and prices to __________ the actual inflation rate
A) increase at the same rate as
B) increase at a higher rate than
C) increase at a slower rate than
D) cannot be exactly predicted
A
Economics
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When people hold money to make anticipated purchases of goods and services, they are exercising the _______ demand for money.
A) speculative B) exchange C) transactions D) precautionary
Economics
When the Fed increases the rate of growth of the money supply to jump start the economy, the unemployment type that will be directly affected is the
A. structural unemployment. B. natural rate of unemployment. C. frictional unemployment. D. cyclical unemployment.
Economics