Explain how the federal funds rate can be used when the inflation rate is too high or there is an inflationary gap. The theory of purchasing-power parity says that higher inflation in a nation causes the nation's currency...
Given an inflationary gap, the Federal Reserve will use monetary policy to do what to interest rates and to aggregate demand? increase; decrease decrease; decrease increase; increase decrease; increas Deflation occurs when: a. price levels fall and the inflation...
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Meanwhile, consumer and money expert Helen Dewdney said: "It would appear that Vinted is reluctant to step in where there is a dispute regarding the description. It implies to both seller and buyer that the buyer pays for return postage but this is not the legal position where not...
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"It doesn't matter how beautiful your idea is, it doesn't matter how smart or important you are. If the idea doesn't agree with reality, it's wrong", Richard Feynman (paraphrased)
If the economy is self-regulating, what happens if it is in a recessionary gap? According to economists who believe in a self-regulating economy, what happens step-by-step when the economy is in a recessionary gap? What happens when the economy is in an infl...
According to economists who believe in a self-regulating economy, what happens when the economy is in a recessionary gap? What happens when the economy is in an inflationary gap? The term consumer price index (CPI) in economics...
B. Inflation is steady at If there is a decline in the money growth, what might you expect to happen to real GDP (real output) and inflation rate? As the economy falls from the peak to the trough of the business cycle: a. inflationary ...
Inflation is the increase in the value of goods over a period of time whereas interest is the amount of money paid to the lender by the borrower for the loan taken. Inflation and interest are closely related and are an important indicator in economics and are often ...