During hyperinflation, exploding inflation causes real money demand to
A) fall over time, and this additional monetary change makes money prices rise even more quickly than the money supply itself rises.
B) increase over time, and this additional monetary change makes money prices rise even more quickly than the money supply itself rises.
C) fall over time, and this additional monetary change makes money prices decrease even more quickly than the money supply itself rises.
D) increase over time, and this additional monetary change makes money prices decrease even more quickly than the money supply itself rises.
E) fall over time, and this additional monetary change makes money prices decrease even less quickly than the money supply itself rises.
A
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Why are firms usually unwilling to lower nominal wages?
What will be an ideal response?
Refer to the accompanying figure, which shows the annual domestic supply and annual domestic demand for jeans in a small country.
If the world price of a pair of jeans is $40, and this country is open to trade with the rest of the world, then it will ________ pairs of jeans each year.
A. export 4,000 B. export 24,000 C. import 28,000 D. import 24,000