If Nominal Money Balances Increase from $2 Billion to $3

question 51

Multiple Choice

If nominal money balances increase from $2 billion to $3 billion, while the price level increases from 100 to 150, real money balances will

• A)have increased by 50%.
• B)have decreased by 50%.
• C)have increased by 100%.
• D)be unchanged.

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Definitions:

Americans

Residents or citizens of the United States, often characterized by a diverse cultural heritage and a wide range of beliefs and practices.

Internal Locus Of Control

Occurs in people who feel they are in control of the events in their own lives.

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A psychological construct that embodies an individual's positive or negative evaluations, feelings, and tendencies towards an object or idea.

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Individuals who tend to maintain a positive outlook on life and anticipate positive or favorable outcomes, often exhibiting resilience in the face of adversity.