Increases in the Expected Inflation Rate Cause

question 35

Multiple Choice

Increases in the expected inflation rate cause

• A)the velocity of money to increase
• B)the velocity of money to decrease
• C)money to become a better store of wealth
• D)decreases in the actual price level
• E)the money supply to increase

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Definitions:

Specified Prices

Prices that are explicitly set out, defined, or agreed upon in a contract or agreement.

Contractual Liability

The liability that individuals or entities have to one another as a result of entering into an agreement.

Common Law

A system of law based on precedent and customs rather than statutory laws.

Gap-Filling Rules

Provisions in law that allow courts or parties to fill in missing terms in a contract.