Multiple Choice
The reason why individuals have more money demand when their inflation expectations increase is because:
A) they need to find another job when prices go up so that they could buy the same goods and services.
B) they need more money in their pockets when prices go up so that they could buy the same goods and services.
C) they need a higher wage when prices go up so that they could buy the same goods and services.
D) they need less money in their pockets when prices go up so that they could buy the same goods and services.
Correct Answer:
Verified
Correct Answer:
Verified
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