Answer:
The sacrifice ratio could be as small as 0
Explanation:
The Sacrifice Rate is the loss of output due to the fight against inflation, and can be expressed as how much product is lost to reduce inflation by 1 percentage point. The Sacrifice Rate is a proposition by economist Robert Lucas Jr, who noted that the slowdown in long-term inflation is associated with a reduction in the production of goods and services over a period of time until economic agents adapt to the new reality. pricing and restructuring their expectations of the economy. Therefore, the social cost of fighting inflation is a reduction in GDP and an increase in the unemployment rate.
Because of this, we can conclude that if policymakers are committed to reducing inflation and rational people understand this commitment and quickly reduce their inflation expectations, the sacrifice rate can be as low as 0.
The answer to your question is .)
Answer:
D
Explanation:
working with laws, rules, and regulations
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Answer:
As the interest rate rises, the cost of a given investment project <u>rises </u>and businesses invest <u>less</u>.
Explanation:
The rise in interests will ultimately cause less economic growth. As the interest rate increases, the cost of a project will increase eventually. Even the products that would be used for the project will be subjected to interest hence, the project will become very costly.
People will eventually invest less because they wouldn't be able to pay the interests. Some people might take loans from banks to invest but ultimately they should have a probability of making enough money from the project to return the loan.
I’m sorry if this is wrong but I’m pretty certain that the answer is true