Asked by Karlie Kuang on Jun 05, 2024
Verified
People tend to hold more money as
A) the average price level falls.
B) the interest rate rises.
C) credit availability falls.
D) incomes fall.
Average Price
The sum of prices of all goods or services divided by the number of units, used to give a general idea of price levels in a market.
- Ascertain the influence of monetary policy decisions on inflation and deflation phenomena.
Verified Answer
KR
Kayla RamdatJun 11, 2024
Final Answer :
C
Explanation :
People tend to hold more money when credit availability falls because it becomes harder to borrow money, leading individuals to keep more cash on hand for transactions and emergencies.
Learning Objectives
- Ascertain the influence of monetary policy decisions on inflation and deflation phenomena.
Related questions
To Fund Budget Shortfalls, the Government of Sineria, a Country ...
In Practice, Inflation Is Measured by Looking at the _____ ...
Gross Domestic Product (GDP) That Has Been Adjusted to Account ...
Do You Think a Country with High Levels of Inflation ...
Looking at the Consumer Price Index Since the End of ...