Changes in General Price Levels Due to Inflation or Deflation

question 5

Short Answer

Changes in general price levels due to inflation or deflation cause the ______________________________ of the monetary unit to increase or decrease ______________

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Definitions:

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance federal government's expenditures.

Vault Cash

Currency and coins held by a bank in its vault and used to satisfy the bank's reserve requirements.

Securities

Financial instruments representing ownership (stocks), a creditor relationship with a government or corporation (bonds), or other rights to ownership or profit.

Open Market

A marketplace that is open to all participants, where buyers and sellers engage in trade without significant restrictions or regulations.