Inflation is forecasted to remain consistent with its target

Assignment Help Business Economics

Reference no: EM13893229

Inflation is forecasted to remain consistent with its target over the next 1-2 years. Inflation arises when:

A. The expenditure plans of agents exceed the supply of output by firms

B. The earning plans of agents fall short of what they earn in the economy

C. The currency appreciates in the foreign exchange market

D. A and B

A brief explanation is preferred.

Reference no: EM13893229

Questions Cloud

About the open market sale : Suppose the Fed conducts an open market sale by selling $10 million in Treasury bonds to Acme Bank. Sketch out the balance sheet changes that will occur as Acme restores its required reserves (10% of deposits) by reducing its loans.

Concerned about inter-generational equity problems : The Australian government is concerned about inter-generational equity problems. Key problems arise from a larger number of older retired people being supported by a smaller workforce of young people, and from ever increasing budget deficits to be pa..

Act on their assumptions regarding human nature : Is elitism or pluralism more persuasive in explaining the behavior of political actors, individuals, and groups of individuals when they interact with government? What core assumption about human beings do both philosophies make to drive their assump..

Which they diverted from-expanded upon-rejected : Indicate two ways in which the framers of the United States Constitution were directly influenced by the thought of John Locke. Indicate one way in which they diverted from, expanded upon, rejected, or otherwise revised Locke's thinking.

Inflation is forecasted to remain consistent with its target : Inflation is forecasted to remain consistent with its target over the next 1-2 years. Inflation arises when:

Initial fiscal stimulus and cumulative fiscal stimulus : Suppose Congress and the president decide that the best method to stimulate the economy is to cut taxes. The total amount of tax cuts approved is $300 billion and the current MPC is .80. Determine the initial fiscal stimulus and the cumulative fiscal..

Represent the monopolistic competition market structure : A price discriminating firm will charge the lowest price when the price elasticity of demand is. Which of the following industries is most likely to represent the monopolistic competition market structure? In the Kinked Demand curve model, price ten..

How do oligopolies influence market inefficiencies : How do oligopolies influence market inefficiencies? a. the industry produces less output b. deadweight loss for society is increased c. prices for those goods are artificially high d. the industry makes higher profits

Acts as representing either saving or investment : Identify each of the following acts as representing either saving or investment.

User Account

All Pages