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Business, 14.11.2019 03:31 jtbrown0093

Imagine that the chairperson of the federal reserve announced that, as of the following day, all currency in circulation in the united states would be worth 10 times its face denomination. for example, a $10 bill would be worth $100; a $100 bill would be worth $1,000, etc. furthermore, the balance in all checking and savings accounts is to be multiplied by 10 as will the balance of all outstanding debts. so, if you have $500 in your checking account, as of the following day, your balance would be $5,000, etc. would you actually be 10 times better off on the day the announcement took effect? a. no, because the velocity of money would stay constant. b. yes, because you would now be able to buy 10 times as much in goods and services. c. no, because all prices would increase by a factor of 10 as well, keeping the real value of your money constant. d. yes, because the real value of your money would increase by approximately a factor of 10.is the answer a, b,c, or d?

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