I have a question that i just cant answer.
WHICH of the following is most likely to increase if the publi decides to increase its holdings of currency?
a) the interest rate
b) the price level
c)disposable personal income
d) employment
e) the resevre requirement
!!!EM PLEH
2006-11-22 03:56:54 · 3 answers · asked by Josh Zee 2 in Social Science ➔ Economics
The right answers are a) & b).
The prevailing view in mainstream economics is that inflation is caused by the interaction of the supply of money with output and interest rates. An increase of the supply of money causes inflation (rise of th price level) and a rise in interest rates.
2006-11-22 05:35:55 · answer #1 · answered by Alexi 2 · 1⤊ 0⤋
who would know that.
2006-11-22 04:01:16 · answer #2 · answered by Peter H 1 · 0⤊ 0⤋
E.
2006-11-22 04:21:15 · answer #3 · answered by correrafan 7 · 0⤊ 0⤋