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It Is Not Surprising to Learn That, During Hyperinflations, the Demand

Question 55

Multiple Choice

It is not surprising to learn that, during hyperinflations, the demand for real money balances:


A) accelerates because people need to hold more money to cover higher prices.
B) remains constant because we are talking about real, not nominal, balances.
C) decreases, as the value of the nominal money decreases.
D) is unpredictable.

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