Business, 13.04.2021 04:40 kaitlynmorgan43

Monetary approach and forecasting. Suppose relative PPP and the quantity theory of money hold. Suppose you expect the rate of money growth of Argentina in the next year to be around 15% while your forecast for its real GDP growth is at 2%. Suppose inflation in Brazil is expected to be at 4%.
Suppose you learn that the government of Argentina is planning to cut taxes. You expect this tax cut to be financed through money creation and revise your forecast for money growth to be 25% instead of 15%.
Suppose that you also expect the UIP to hold. You know that the nominal interest rate in Brazil today is 6% (on deposits maturing in a year).
1. What is the nominal interest rate in Argentina?
2. What is the world real interest rate?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 20:30

marketing strategies should be established before marketing objectives are decided. t/f

Answers: 1

Answer

Business, 22.06.2019 16:40

Determine the hrm’s role in the performance management process and explain how to ensure the process aligns with the organization’s strategic plan.

Answers: 1

Answer

Business, 22.06.2019 19:30

Problem page a medical equipment industry manufactures x-ray machines. the unit cost c (the cost in dollars to make each x-ray machine) depends on the number of machines made. if x machines are made, then the unit cost is given by the function =cx+−0.3x2126x31,935 . how many machines must be made to minimize the unit cost?

Answers: 3

Answer

Business, 22.06.2019 22:20

Which of the following is correct? a. a tax burden falls more heavily on the side of the market that is more elastic.b. a tax burden falls more heavily on the side of the market that is less elastic.c. a tax burden falls more heavily on the side of the market that is closer to unit elastic.d. a tax burden is distributed independently of the relative elasticities of supply and demand.

Answers: 1

Answer

You know the right answer?

Monetary approach and forecasting. Suppose relative PPP and the quantity theory of money hold. Supp...

Questions