ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Generally speaking, ____ favors borrowers over lenders because as time passes they are able to pay back their debts with currency that is _____ valuable as it was at the time of the loan.
a.Inflation, less
b.Nominal
c.Deflation, less
d.Velocity of money, less
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- 2. How does a very high rate of inflation affect individual spending and saving? Explain your answer.arrow_forwardTyped plzzz and Asap Thanksarrow_forwardBased on the money market model, when real GDP increases, the equilibrium interest rate should Select one: a. increase the same percentage as the money supply increase. b. increase. c. stay the same. d. decrease.arrow_forward
- Fiscal and Monetary Policies a. Write down the relationship between Budget Deficits, Debt, Government Spending and Taxes as a ratio to GDP. Explain the four independent variables that affect the ratio of Debt to GDP and the direction of its movement b. Explain the difference between policy rule and policy discretion in monetary policy. Please provide examples.arrow_forwardMultiple choice, thank you for the help! Money that has no intrinsic value except as money is called a. b. C. d. e. a. b. C. d. Money made with silver, gold, and chocolate are examples of e. a. b. C. d. e. a. b. bonded C. commodity Fiat money has value because: d. fiat e. intrinsic None of these answers is correct. fiat commodity backed government None of these answers is correct. it is backed by gold. Liquidity is a measure of: people believe it has value. it has intrinsic value. it is backed by silver. None of these answers is correct. the monetary base. the amount of reserves. how quickly an asset can be converted to currency. how quickly coins can be melted down. how many coins are in circulation. money. money.arrow_forwardAccording to the quantity theory of money, if there is a significant increase in money supply there will be an increase in the a. Unemployment rate b. Loanable funds market c. Price level d.Real interest ratearrow_forward
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