_________ inflation can be explained by an _________ shift in the aggregate _________ curve.
a. Demand-pull, rightward, demand
b. Cost-push, rightward, supply
c. Demand-pull, leftward supply
d. Cost-push, leftward, supply
Question 2
Why do people hold money (currency and checking account balances), and thereby forgo earning interest or dividends from a financial investment?
a. Some money is demanded for everyday transactions like parking fees, lunch, and buying groceries.
b. Some money is demanded as a precaution against unexpected costs such as automobile repairs, speeding tickets, or temporary loss of a job.
c. Some money is demanded for speculative purchases of stocks, bonds, or collectibles in case they become available at a particularly low price.
d. All of the above are correct.
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