When the dollar depreciates, this shifts the AD curve rightward and the SRAS curve leftward, leading to a higher price level

If an individual is to hold lower money balances on average, she must make more frequent trips to the bank to withdraw money. This inconvenience of reducing money holding is called:

A. a menu cost. B. a shoeleather cost. C. an inflation tax. D. seigniorage.

Interest rates are positive mainly because

A) of inflation. B) people tend to prefer the present to the future. C) people tend to prefer the future to the present. D) bankers are greedy.