Which of the Following Is a LIKELY Response to Inflation

question 38

Multiple Choice

Which of the following is a LIKELY response to inflation?

• A)People choose to carry higher money balances.
• B)People tend to make fewer transactions.
• C)People tend to make more transactions.
• D)People tend to hold on to fewer interest-bearing assets.

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Definitions:

Studying

The act of devoting time and attention to gaining knowledge of an academic subject.

Costs

Expenses incurred in the production of goods or services, including materials, labor, and overhead.

Marginal Analysis

An examination of the benefits and costs of increasing or decreasing production or consumption by one unit.

Revenue

The complete financial proceeds a company secures from conducting sales of goods and execution of services within a predetermined interval.