Which of the following does not describe hyperinflation? Select one: A) . During a hyperinflation people often try to shift to a "hard" currency issued by another country. B) Hyperinflation is often defined as an annual inflation rate higher than 100 percent. C) Germany, Hungary, Bolivia, Ukraine, Venezuela, and Zimbabwe have experienced hyperinflation in the last 100 years. D) . During a hyperinflation people tend to resort to barter to avoid dealing with rapidly inflating currency. E) The purchasing power of money increases dramatically during hyperinflation.

Determine if True or False for each statement:

8. Assume that S, = 1.60 USD/GBP. How will this spot rate adjust according to PPP if the United Kingdom experiences an inflation rate of 5% while the U.S. experiences an inflation rate of 3%?

QUESTION ONE The Central bank of any country is a national bank responsible for the implementation of the monetary and fiscal policy of a country in order to avert or reduce inflation. This means that the bank is a vehicle through which the government accomplishes many of its economic objectives and deliver development to its citizens. Inflation can be too toxic to an economy as it diverts the economic intentions of any government. One of the impact of increased inflation is on an increased unemployment levels (Olivia Beria, 2016).i. Using Philips Curve, illustrate how increased inflations affects unemployment levels. ii. . Real money demand refers to the amount of money people want to hold in real terms, which means adjusted for inflation. It represents the desire for individuals to hold a certain amount of purchasing power in liquid form, in order to facilitate transactionsand make purchases. The real money supply is equal to the nominal amount of M2, divided by the fixed aggregate…

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.