According to financial analysis, the real-balances effect is when a higher price level reduces the purchasing power of the public's accumulated savings balances.
The real-balances effect is a phenomenon that occurs during the inflation period. During this period, the prices of commodities increases while the purchasing power reduces.
Therefore, to protect their money, people tend to save, which increases the public's accumulated savings balances.
Hence, in this case, it is concluded that the correct answer is "the real-balances effect."
Learn more here: https://brainly.com/question/23115723
