Monetary Policy in Mokania Mokania has had inflation of 15% for many years. Mokana establishes a new central bank, the Bank of Mokania, with the hopes of reducing the inflation rate. r to Monetary Policy in Moka nia. The Bank of Mokania publicizes its intent to reduce the inflation rate to 5%. If it is successful in doing so but people had expected inflation to fall only to 10 %, then unemployment rises but it would have risen by less if people had expected inflation to be 6%. 9. Refer to Monetary Policy in Mokania. The Bank of Mokania publicizes that it intends to reduce the inflation rate to 5%. If it actually reduces inflation to 3% and people were expecting inflation to fall only to 890, then unemployment rises but it would have risen by less if the Bank of Mokania had reduced inflation to 5% rather than 3%. Refer to Monetary Policy in Mokania. The Bank of Mokania reduced inflation to its announced goal of 5%. However its efforts made the unemployment rate rise by 10 percentage points for a year while output fell by 30 percent for a year. Which of the following is correct?
a. Initially people's inflation expectations had been higher than 5%. The sacrifice ratio was 3. 10.
Answers: 1
Business, 22.06.2019 09:50
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Business, 22.06.2019 11:50
True or flase? a. new technological developments can us adapt to depleting sources of natural resources. b. research and development funds from the government to private industry never pay off for the country as a whole; they only increase the profits of rich corporations. c. in order for fledgling industries in poor nations to thrive, they must receive protection from foreign trade. d. countries with few natural resources will always be poor. e. as long as real gdp (gross domestic product) grows at a slower rate than the population, per capita real gdp increases.
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Business, 22.06.2019 12:50
Explain whether each of the following events increases or decreases the money supply. a. the fed buys bonds in open-market operations. b. the fed reduces the reserve requirement. c. the fed increases the interest rate it pays on reserves. d. citibank repays a loan it had previously taken from the fed. e. after a rash of pickpocketing, people decide to hold less currency. f. fearful of bank runs, bankers decide to hold more excess reserves. g. the fomc increases its target for the federal funds rate.
Answers: 3
Monetary Policy in Mokania Mokania has had inflation of 15% for many years. Mokana establishes a new...
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