Which term below describes the situation in which consumers fight higher than normal inflation by withdrawing funds from banks more often than usual and spending the money, rather than holding in banks?   a. Shoeleather costs b. Nominal variables c. Fisher effects d. Menu costs

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Use the macroeconomic theories explained in the course to write a paper explaining how the Canadian government used a combination of an easy money policy with an expansionary fiscal policy to reduce the negative effects of Covid-19 on the Canadian economy. Why did these policies helped to create the current inflation. Create your own graphs or refer to graphs in your textbook to illustrate your answer.

An economist would be more likely to argue against reducing inflation if she thought that a. the central bank lacked credibility and if bonds were usually not indexed for inflation. b. the central bank lacked credibility and if bonds were usually indexed for inflation. c. the central bank had credibility and if bonds were usually not indexed for inflation. d. the central bank had credibility and if bonds were usually indexed for inflation.

1. What are the main reasons that the U.S. inflation surged last year? 2. What is the monetary policy the Fed (central bank of the U.S.) uses to control inflation? 3. How did the monetary policy cause the bankruptcy of Silicon Valley Bank?

Money neutrality is the idea that a. any policy can have intended and unintended consequences b. in the long-run, markets will clear and return the economy to equilibrium regardless of what happens to the money supply. c. there are two types of variables, nominal and real, and only nominal variables are affected by the money supply. d. nominal and real interest rates are unrelated.   During the middle of the 20th century, income inequality in developed economies generally fell. The reason for this was a. average incomes didn't rise but welfare systems redistributed income.  b. that returns to assets held by high income earners fell steadily. c. incomes overall rose but taxation systems were slowly made more and more progressive. d. a rise in average income with incomes of the bottom deciles rising faster than the top.

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Money demand is likely to increase the most during which part of the business cycle? A. peak B. recession C. contraction D. trough E. recovery

4)  Why might it be expected that an increase in interest rates will tend to reduce inflation?