If People Correctly Anticipate an Increase in Aggregate Demand, a Result

question 140

Multiple Choice

If people correctly anticipate an increase in aggregate demand, a result is

• A)a lower rate of inflation in the current time period.
• B)an increase in the real value of outstanding government debt.
• C)workers demanding higher money wages to keep the real wage unchanged.
• D)There are no predictable results associated with an anticipated increase in aggregate demand.

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