Which of the following is the real balance effect?
A) When real incomes fall, because incomes do not rise as fast as prices
B) When prices rise, people require more money which drives up interest rates, encouraging saving and thereby reducing aggregate demand
C) The impact of the value on people's savings following a change in the price level
D) When prices rise, people switch to alternative goods produced in other countries
Correct Answer:
Verified
Q56: Study the following data. Q57: Study the following data. Q58: Nominal values are measured in_and real values Q59: You want to make a 4% real Q60: In a period of rapid inflation, which Q62: Which one of the following does not Q63: As the price level in the economy Q64: In the following aggregate demand and supply Q65: If there is a rightward shift in Q66: The aggregate supply curve cannot be the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents