Are high interest rate an effective anti-inflationary policy

Assignment Help Microeconomics
Reference no: EM132181699

Question: 1. Are high interest rates an effective anti-inflationary policy, or do they cause inflation?

2. If a government wishes to increase taxes to reduce inflation, which would be the more effective: income tax or Value Added Tax? Justify your answer.

Reference no: EM132181699

Questions Cloud

Why does a rise in price level imply fall in the value money : Why does a rise in the price level imply a fall in the value of money? How accurately does the RPI measure the change in your own income?
Explain the types of crimes and the types of punishments : Explain the types of crimes and the types of punishments that exist. Second, provide an ethical explanation for the relationship between crimes and punishments.
Describe how would you rule on this motion : A computer check showed that the man had an outstanding misdemeanor warrant for his arrest.
Increase in transfer payments in the short run : If the goal is to increase real GDP, how effective is an increase in transfer payments in the short run vs. in the long run? Why?
Are high interest rate an effective anti-inflationary policy : Are high interest rates an effective anti-inflationary policy, or do they cause inflation? If a government wishes to increase taxes to reduce inflation.
Maintain and evaluate a work health and safety : BSBWHS501 – Ensure a safe workplace - establish, implement, maintain and evaluate a work health and safety (WHS) management system for a work area
Are human rights important for economy : Are human rights important for economy? If so, what are the effects of human rights on economy?
Do demand management policies ignore the supply side : Is it realistic to expect governments to achieve the aims of macroeconomic policy? Discuss the proposition that governments should neither be praised.
Analyzers are usually the first to enter new markets : In differentiation strategies, the emphasis is on creating value through uniqueness. Analyzers are usually the first to enter new markets.

Reviews

Write a Review

Microeconomics Questions & Answers

  Downsides to the u.s. population saving more

After a decade of overconsumption Americans are finally saving at the appropriate levels. Despite only modest increase in real incomes, the U.S. Savings rate has risen to 5.4% as of August 2014. What are some of the key drivers that may be a..

  Why is it important to healthcare organizations

What is the revenue cycle and why is it important to healthcare organizations? Please include key measures for a successful revenue cycle process.

  What role does competition play in technological development

It is mentioned that Whirlpool provides three different types of appliances that vary in the amount of features that are offered. Discuss the product differentiation across these types. How could this affect production costs negatively? Positively? W..

  What potential solutions are there

According to the Bird and Borio readings, global economic imbalances arise over time and are often the usually the result of financial or structural economic.

  One is the more rural state capital of albany

New York State. One is the more rural state capital of Albany, the other one is in New York City. The abatement cost for SO2 are CA(qA) = 0.5(qA)^2 for the plant in Albany and 2A CB(qB) = (3/2)(qB)^2  for the older plant in New York City, where qA an..

  Describe a proportional tax using examples

Which of the following example(s) describe a proportional tax? Social Security tax rate of 6.2% on earned income below $117,000 and 0% on income earned.

  Market incentives and disincentives led to the growth

(1) How do market incentives and disincentives led to the growth or the eradication of poverty? How is poverty measured? What seems to be the best way to life people out of poverty?

  Write a summary of relative prices and relative prosperity

Write an article summary of Relative Prices and Relative Prosperity By CHANG-TAI HSIEH AND PETER J. KLENOW.

  Calculate producer surplus with monopoly

Draw demand, marginal revenue and marginal cost curves. Calculate and show how much this firm will sell and what they will charge. Calculate producer surplus with monopoly and the consumer surplus with monopoly. How much would be produced if this wa..

  What was the effective euro deposit interest rate

What was the effective Euro deposit interest rate for 6-months, in percent per annum? Ignore bid/ask spreads.

  If there is a natural monopolyone firm owns all the natural

if there is a natural monopolyone firm owns all the natural resources in the production of a good such as owning the

  Problem on negotiating cultural differences in america

For this assignment, choose two of the "Historical Documents" authors we have read so far this term. Choose authors you have found interesting, engaging.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd