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1i. Describe TWO (2) types of inflation. 1ii. Assess TWO (2) ways in which inflation may have an impact on an economy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1i. Describe TWO (2) types of inflation.
1ii. Assess TWO (2) ways in which inflation may have an impact on an economy.

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Step 1: INTRODUCTION:

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Step 2: A. Functions of a Central Bank:

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Step 3: B. Ways in which a Central Bank controls money supply:

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Step 4: IN THIS STEP WE WILL SEE (C. Inflation), (D. Types of inflation:) And ( E. Impact of inflation)

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9) Explain why inflation may tend to accelerate.
Inflation is caused as a result of A) decrease in the money supply without a corresponding decrease in production. B) fall in production. c) increase in the money supply without a corresponding increase in production. D) increase in the money supply.
Explain cost Push Inflationary Process in detail.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
7 Find and describe an inflation contemporary issue of supply and demand into three paragraphs with empirical facts including proper sources and citations related to macroeconomics as well as interesting.
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
4) Why might it be expected that an increase in interest rates will tend to reduce inflation?
Question 45 By definition, the velocity of money is the a) difference between this year's inflation rate and last year's. b) inverse of the time the average commercial transaction takes. c) number of individual commercial transactions occurring each year. d) rate at which the money supply is growing. e) number of times per year a unit of money changes hands.
(c) Briefly explain the quantity theory of money and how it is related to inflation.
Question 3.B Explain the differences between creeping inflation and walking inflation?