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

question 352

Multiple Choice

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

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

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