Whether Real Seignorage Revenue Increases When the Rate of Money

question 75

Multiple Choice

Whether real seignorage revenue increases when the rate of money growth increases depends on whether

• A)the rise in real money holdings outweighs the decline in inflation.
• B)the rise in inflation outweighs the decline in real money holdings.
• C)the rise in inflation ratio outweighs the decline in the real supply of currency.
• D)the rise in the real supply of currency outweighs the decline in inflation.

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