Question
In the short run it may be unchanged, but if people expect higher inflation, the nominal interest rate will increase and velocity will also increase,
In the short run it may be unchanged, but if people expect higher inflation, the nominal interest rate will increase and velocity will also increase, reducing the seignorage in case (c).
WHY??
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Environmental And Natural Resource Economics International Edition
Authors: Thomas H Tietenberg, Lynne Lewis
10th Edition
1292060794, 9781292060798
