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kondor19780726 [428]
1 year ago
8

Suppose the central bank in the nation of Zook attempts to pay off its national debt by printing large amounts of currency. The

large increase in the money supply causes the price level to rise by 1,200 percent. What do you expect will happen to the value of Zook's currency?
Instructions: Round your answer to 2 decimal places.




The value of Zook's currency will

(Click to select)

by

percent.
Business
1 answer:
stiks02 [169]1 year ago
8 0

Answer:

it would become worthless

Explanation:

if they keep printing loads of money then the individual Zook dollar would decrease in worth

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The correct answer is: D. The supply increases more than the demand increases.

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Thus, depending on the price in the market of a good, the bidders are willing to manufacture a certain number of that good. Like the plaintiffs they are willing to buy a certain number of that good, depending on the price. The point where there is a balance because the plaintiffs are willing to buy the same units that the bidders want to manufacture, for the same price, is called the market equilibrium or breakeven point.

According to this theory, the law of demand states that, keeping everything else constant, the quantity demanded of a good decreases when the price of that good increases. On the other hand, the law of supply indicates that, keeping everything else constant, the quantity offered of a good increases when its price does.

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vekshin1

Answer:

Both of these answers are correct.

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I hope my answer helps you.

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