As the price level falls,
A) the purchasing power of cash holdings rises.
B) the purchasing power of cash holdings falls.
C) the purchasing power of cash holdings remains constant.
D) cash holdings turn into dollar-denominated assets.
E) none of the above
A
Economics
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A) The equilibrium price falls, and the equilibrium quantity rises. B) The equilibrium price rises, and the equilibrium price falls. C) The equilibrium price and quantity rise. D) The equilibrium price and quantity fall.
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Fixed exchange rates serve as a constraint on inflationary government policies
a. True b. False Indicate whether the statement is true or false
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