In the Medium Run,an Increase in Inflation Causes

question 47

Multiple Choice

In the medium run,an increase in inflation causes

• A)an increase in the opportunity cost of holding money.
• B)a reduction in the opportunity cost of holding money.
• C)no change in the opportunity cost of holding money.
• D)individuals to switch from holding bonds to money and increase their real money balances.

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Definitions:

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