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Q

When inflation rises, people will desire to hold

a. less money and will go to the bank less frequently.

b. less money and will go to the bank more frequently.

c. more money and will go to the bank less frequently.

d. more money and will go to the bank more frequently.

A

Answer: B.

As inflation continues to rise and prices of goods begin to increase, the fiscal value of money continues to drop, causing people to stock up on non-perishable items that need replenishing in the foreseeable future.

This means more frequent trips to the bank, and less money held.

3 years ago
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