What is inflation? A) A decrease in the general price level C) A decrease in the money supply give 20 downvotes B) An increase in the general price level D) An increase in the money supply Don't use chatgpt otherwise
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- Which of the following is a consequence of inflation a. An increase in economic growth b. An increase in the purchasing power of money c. A decrease in the unemployment rate d. A decrease in the purchasing power of money Please provide the correct answer ###@@@@####@@#$$$$$$$Which of the following is not a factor in explaining why the present value of a future dollar is less than one dollar?A. InterestB. Inflation C. Risk of failure to receive expected cash inflows D. Historic costQUESTION 1 A general decline in prices also decreases the value of money. True False
- The purpose of the inflation premium is to maintain the purchasing power of money while it is loaned to someone else. TTrueFFalse What kind of problem bad credit risks people pose to financial intermediaries ? AMoral hazard BNone of the above CAdverse Selection DFree-ridingAn increase in money supply coupled with a disruption in the supply chain will often cause inflation True FalseNo chatgpt answer pls In which of the following situations does the government NOT need to balance its budget? a. if nominal GDP grows faster than the growth in debt b. if nominal GDP grows slower than the growth in debt c. if inflation is zero d. if inflation is higher than the growth in debt
- Based on your understanding of the fAactors that affect the cost of money, Identify which of the following statement is true. a. higher inflation leads to lower interest rates. b. Interest is the price paid to borrow funds. c. Higher risk leads to lower interest rates.Choose the correct answer 1.) Which of the following is/are the possible effects of introducing fresh currency?[S1] Increase in money supply with the public [S2] The rise in the nominal income of public [S3] The fall in the general price level A.) Statement 1 only. B.) Statements 1 and 2 only. C.) Statement 2 only. D.) Statements 1, 2, and 3. 2.) If the quantity of money demanded exceeds the quantity of money supplied, then the interest rate will A.) fall B.) remain constant C.) rise D.) change in an uncertain direction 3.) [Case 1] Mortgagor A earns P50,000 a month while Mortgagor B earns P80,000 per month. [Case 2] Mortgagor C is willing to make a down payment of P3,000,000 while Mortgagor D will make a down payment of P5,000,000. Assuming everything else is held constant, who will have a better credit rating A.) A and C B.) A and D C.) B and C D.) B and DExplain negative inflation premium.
- When does the present economy studies do or use? a. When interest rate is not given b. When time is not given c. When time is not given but interest rate is given d. When time is given but interest rate is not givenHow does a high rate of inflation affect money in all its different roles?A. What is the incremental cash flows from switching credit policies? B. What is the cost of switching? C. What is your recommendation? D. What is the break-even sales increase? Interpret.