Assume the demand for real money balances is a function of


Assume the demand for real money balances is a function of real income, only. Additionally, assume the money supply and real income are constant and assume we expect inflation to rise in the future. Based on these assumptions and the quantity equation, what effect do our inflation expectations have on the current price level? Please defend your reasoning.

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Business Economics: Assume the demand for real money balances is a function of
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