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
Economics
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a. True b. False Indicate whether the statement is true or false
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When income taxes are included in the basic macroeconomic model, the value of the
a. inflationary effect is increased. b. multiplier is increased. c. multiplier is decreased. d. expenditure function is increased.
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