The real-balance effect indicates that at higher price levels
A) the real value of money holdings increase, resulting in increased saving.
B) the purchasing power of money will increase.
C) the real value of money holdings fall, resulting in decreased spending.
D) the value of the dollar will increase.
C
Economics
You might also like to view...
The quantity of labor demanded depends on the
A) money wage rate not the real wage rate. B) real wage rate not the money wage rate. C) price of output not the money wage rate nor the real wage rate. D) money wage rate AND the real wage rate.
Economics
In 2007, the interest rate banks in France charge each other for loans was 4.86 percent. The inflation rate in France in 2007 was 2.8 percent. The real interest rate in France is
A) 7.62 percent B) 2.06 percent. C) 0.58 percent. D) 13.6 percent.
Economics