An Increase in Expected Inflation Is Likely to Cause

question 19

Multiple Choice

An increase in expected inflation is likely to cause

• A)a decline in the demand for real balances.
• B)an increase in the demand for real balances.
• C)no change in the demand for real balances.
• D)no change in the demand for real balances only if the income elasticity of real money demand is zero.

---

Definitions:

SHIFT+RIGHT ARROW

A keyboard shortcut commonly used to select text or objects by extending the selection to the right.

Picture Tools Format

A feature or suite of tools in various software applications designed for editing and formatting images.

Currently Selected

The active selection or focus within a software environment, indicating that actions will apply to that item or area.

Default Color Scheme

The preset combination of colors selected or used by an application, which can often be customized by the user.