Inflation ________ the cost of holding money and ________ the after-tax real interest rate
A) decreases; increases
B) increases; decreases
C) increases; increases
D) decreases; decreases
E) increases; does not change
B
Economics
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What does it mean when one currency is "pegged" against another currency?
What will be an ideal response?
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Which of the following is a main characteristic of exchanges in the market system?
A) Decisions to trade are based on individuals' self interest. B) Exchanges are highly regulated by the government. C) Sellers hire economists to determine the market clearing price. D) Exchanges are part of the legislative imperative.
Economics