Ch 8 text bank - ECO 3200 Intermediate Macroeconomics Ch 8...

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ECO 3200 Intermediate Macroeconomics Ch 8: Inflation A country experiencing a hyperinflation is likely to: Have another hyperinflation after the current problem is solved. A government is most likely to utilize the inflation tax if All of the above (running budget deficit, lenders worry that government won’t pay debt back, Politicians won’t raise taxes) According to the quantity theory of money, increases in the money supply and
If real GDP is growing at a rate of 2% the central bank should grow the money
If the real interest rate is 3% and the nominal interest rate is 1% then the
Price differences over time are actually larger than the raw difference in prices

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