For a very long time the country of Tofu has had an inflation rate of 8 percent. Suddenly its inflation rate drops to 3 percent. The drop in the inflation rate could be due to higher money supply growth. We would expect unemployment to be lower. could be due to slower money supply growth. We would expect unenmployment to be lower could be due to higher money supply growth. We would expect unemployment to be higher could be due to slower money supply growth. We would expect unenmployment to be higher

For a very long time the country of Tofu has had an inflation rate of 8 percent. Suddenly its inflation rate drops to 3 percent. The drop in the inflation rate could be due to higher money supply growth. We would expect unemployment to be lower. could be due to slower money supply growth. We would expect unenmployment to be lower could be due to higher money supply growth. We would expect unemployment to be higher could be due to slower money supply growth. We would expect unenmployment to be higher

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter15: Macroeconomic Viewpoints: New Keynesian, Monetarist, And New Classical

Section: Chapter Questions

Problem 17E

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A common cause of falling inflation is O Weaker growth in demand than in supply for large parts of the economy O High fees and taxes O Strong wage development O Low interest rates and rising investment
When inflation falls, people Select one: O a. make less frequent trips to the bank and firms make more frequent price changes O b. make more frequent trips to the bank and firms make less frequent price changes Oc. make less frequent trips to the bank and firms make less frequent price changes O d. make more frequent trips to the bank and firms make more frequent price changes ge en this page
If inflation is increasing and you expect it to continue to the future then you will want to Spend your money slower and sooner Spend your money slower and later O Spend your money faster and later Spend your money faster and sooner
Suppose that a country’s inflation rate increasessharply. What happens to the inflation tax on theholders of money? Why is wealth held in savingsaccounts not subject to a change in the inflationtax? Can you think of any way in which holders ofsavings accounts are hurt by the increase in inflation?
stant, does this zero-inflation goal require that the rate of money growth equal zero? If yes, explain why. If no, explain what the rate of money growth should equal. 4. The economist John Maynard Keynes wrote in The Economic Consequences of the Peace (1919): "Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can con- fiscate, secretly and unobserved, an important part of the wealth of their citizens." Justify Lenin's assertion. 5. Suppose that a country's inflation rate increases sharply.. What happens to the inflation tax on the holders of money? Why is wealth that is held in savings accounts not subject to a change in the inflation tax? Can think of any way in which holders of savings accounts are hurt by the increase in the inflation rate? you 12 6. Hyperinflations are extremely rare in countries whose central banks are independent of the rest of the ernment. Why might…
Which of the following correctly shows the steps needed to calculate the inflation rate? O Tally up the cost of the basket of goods and services, subtract the value of goods and services that are no longer counted in the basket, and then calculate the inflation rate. Collect prices from the stores where people shop, assess the substitution that people make from low inflation to high inflation products, and calculate the difference in the prices that people pay. O Find out what people typically buy, collect the prices from the stores where people shop, tally up the cost of the basket of goods and services, and calculate the inflation rate. O Find the total value of the basket of goods and services, assess quality changes from one period to the next, and measure the inflation rate.
Please give just answer. There is no need to explain. i. If a country experiences high GDP and inflation, followed by a lower GDP and deflation, this is an example of O Unemployment O Recession O the Business Cycle O Supply and Demand O None of the above ji. What causes inflation? O People don't have enough money O People have too much money O People have too much money and many businesses want some of that money People owe a lot of money The government causes inflation by raising interest rates iii. The Water and Diamond Paradox explains: Why supply and demand always meets in the middle of a graph O Marginal utility of diamonds O Why water is inexpensive while diamonds are so expensive O Why water is so expensive while diamonds are inexpensive O None of the above iv. The unemployment rate is: O The number of people who don't want to work The number of people who are working but don't want to work The number of people who don't want to work and are not working The number of people who…
What determines a country's long run average Inflation rate? Select one: a. The rate of inflation in a country's trading partners. Ob. The rate at which the national debt is rising. c. The rate at which costs are rising. O d. The real rate of currency depreciation. O e. The growth rate of the money supply.
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Harare Zimbabwe's central bank today raised its key intrest rate from 50 percent to 70 percent. The governor of the Reserve Bank of Zimbabwe said the higher rate was inteded to slow consumer spedning, increase foreign buying of Zimbabwe dollars, and slow the rate of inflation, currently running at approximately 200 percent a year. According to the World View after the key intrest rate was raised what was, a) the nominal intrest rate? b) the real intrest rate?"
Suppose the inflation rate has been 15 percent for the past four years. The unemployment rate is currently at the natural rate of unemployment of 5 percent. 30 The Bank of Canada decides that it wants to permanently reduce the infation rate to 5 percent. To de this, the Bank of Canada would use torg-tun Philips curve 25 poley. the natural 20 As a result of this policy, the unemployment rate will be rate of 6 percent and the inflation rate will be edging slowly 15 Use the line drawing tool to draw the line that ilustrates what will happern the Bank of Canadn maintains this policy long enough that workers and fims lower their expectations of future inflation. Property label this line. 10 Short-un Phiips curve Carefully follow the instructions above, and only draw the required objects. 5- Ir the the Bank of Canada policy is successful, the infation rate will be percent and the unemployment rate will beO percent. 10 Unempioyment rate (percent) Click the graph, choose a tool in the palette…
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