Different responses of u.s. compared with brazilian prices

Reference no: EM131134805

Between 1984 and 1985, the money supply in the United States increased to $641.0 billion from billion, while that of Brazil increased to 106.1 billion cruzados from 24.4 billion. Over the same period, the U.S. consumer price index rose to 100 from a level of 96.6, while the corresponding index for Brazil rose to 100 from a level of only 31. Calculate the 1984-1985 rates of money supply growth and inflation for the United States and Brazil, respectively. Assuming that other factors affecting the money markets did not change too dramatically, how do these numbers match up with the predictions of this chapter's model? How would you explain the apparently different responses of U.S. compared with Brazilian prices?

Reference no: EM131134805

Questions Cloud

What does it mean to prove something in mathematics : Give an example of something you've had to prove in your own life. What evidence did you provide to support your reasoning? What strategies did you use to prove your case?

Course learning outcomes and smarter balanced : This week's assignment requires you to make connections between our course learning outcomes, what you observe from a highly effective source known as Smarter Balanced, and how you can apply what you've learned to your own instructional practice.

Why do you think velocity was so much higher in brazil : Refer back to question 3 and calculate velocity for the two countries in 1985. Why do you think velocity was so much higher in Brazil?

Create a business plan : create a business plan:-Required Elements to include in the Business Plan: - Cover all basic matters, including a description of the business and products.

Different responses of u.s. compared with brazilian prices : how do these numbers match up with the predictions of this chapter's model? How would you explain the apparently different responses of U.S. compared with Brazilian prices?

Explain the difference between what happened to kernels : Explain the difference between what happened to kernels that have small speckles versus the kernels that have large speckles

Credible secondary sources gathered during research : In this essay, you will need to cite from at least two credible secondary sources gathered during research. For every line of quoted material, there is a mandatory minimum of at least two (2) lines of analysis.

Determine the dominant strategy for each player : Determine the dominant strategy for each player. If such strategies do not exist, explain why not - determine the secure strategy for each player. if such strategies do not exist, explain why not.

What is the component cost of capital for the company : What is the component cost of capital for the company? Calculate using the CAPM. What is the company's WACC? What are the expected cash flows for the investments? What is the standard deviation for each investment?

User Account

All Pages