Whether real seignorage revenue increases when the rate of money growth increases depends on whether
a. the rise in the real supply of currency outweighs the decline in inflation.
b. the rise in inflation ratio outweighs the decline in the real supply of currency.
c. the rise in inflation outweighs the decline in real money holdings.
d. the rise in real money holdings outweighs the decline in inflation.
Answer: C
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.