A 5% Increase in Real Income Usually Leads to ________

question 108

Multiple Choice

A 5% increase in real income usually leads to ________ in money demand.

• A)a decrease
• B)no change
• C)an increase of less than 5%
• D)a decrease of 5%

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Definitions:

Buffer Stock

An inventory reserve kept on hand to protect against variability in demand or supply.