"Real money balances" refers to ________.
A)the quantity of goods and services that money can buy
B)gold and silver
C)money that is actually available to be spent
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Real money balances refer to the purchasing power of money, or the quantity of goods and services that money can buy. It does not refer to gold and silver specifically, nor does it necessarily reflect the actual amount of money that is available to be spent. Therefore, the best choice is A.

"Real Money Balances" Refers to ________