Explain what the rate of money growth should equal

Assignment Help Macroeconomics

Reference no: EM13202296

It is often suggested that the Federal Reserve try to achieve zero inflation. If we assume that velocity of money is constant, does this zero-inflation goal require that the rate of money growth equal zero? If yes, explain why. If no, explain what the rate of money growth should equal.

Reference no: EM13202296

Questions Cloud

What is the standard deviation of the portfolio : The correlation between securities is -0.32. What is the standard deviation of the portfolio - What percentage of your investment should be in A to make the portfolio risk free?

Calculate the price and quantity to maximize tr : Enumerate the various objectives a firm might have and how the price mechanism can be used to realize such goals. While you're at it, calculate the price and quantity to: (a) Maximize TR (b) Maximize total profit

What dimensions will produce the largest total area : A rancher has 296 feet of fencing to enclose two adjacent rectangular corrals. What dimensions will produce the largest total area.

At what rate is the player distance from home plate : A baseball diamond has the shape of a square with sides of 90ft long. A player 30ft from third base is sunning at a speed 28 feet/sec. At what rate is the player's distance from home plate changing.

Explain what the rate of money growth should equal : If we assume that velocity of money is constant, does this zero-inflation goal require that the rate of money growth equal zero If yes, explain why. If no, explain what the rate of money growth should equal.

What dimensions will produce the largest total area : A rancher has 272 feet of fencing to enclose two adjacent rectangular corrals. What dimensions will produce the largest total area?

Illustrate an initial equilibrium for the consumer : Suppose a consumer has an income of $1000 and faces prices Px = $5 and Py = $10. (a). Write the equation for this consumer's budget constraint. (b). Draw the budget constraint, placing Good X on the horizontal axis. Label it BC.

After how many seconds does the ball hit the ground : if a ball is thrown vertically upward at 30 m/s, then its approximate height in meters t seconds later is give by (h)t= 30t - 5t^2.

What is the expected interest rate cost of debt : What is the expected interest rate cost of debt? Internal common stock: Jones Industries has a beta of 1.39. The risk-free rate as measured by the rate on short-term US Treasury bill is 3 percent, and the expected return on the overall market is 1..

User Account

All Pages