Question

Which priciple suggest that the demand for money should increase as prices increase?

Answer 1

The​ real-nominal principle suggest that the demand for money should increase as prices increase.

There are five fundamental standards of economics that specify the way our global handles money and decides which investments are worthwhile and which ones are not: possibility price, marginal precept, regulation of diminishing returns, principle of voluntary returns and real/nominal principle.

A basic guiding principle of macroeconomics and monetary economics is the difference among nominal variables and real variables. Nominal variables are expressed in modern-day market expenses. real variables are adjusted to reflect the changing purchasing strength of cash over time.

The definition of nominal is something that has nearly no price or some thing that exists in call only. An instance of nominal is while someone in a court docket case is minimal damages of best $1 because he turned into wronged however did not sincerely go through any damage. adjective.

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