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Oksanka [162]
3 years ago
15

What is one reason why a government will deliberately inflate its national money supply?

Business
2 answers:
Alex73 [517]3 years ago
5 0

Answer:

To increase aggregate demand

Explanation:

Inflation of national money supply is one of the tools of the monetary authority, that is the central bank of a country to stimulate aggregate demand. Government resort to increasing the money supply when it embarks on expansionary monetary policy to achieve certain macroeconomic goals or objectives. some of the monetary policy tools used to achieve this are : interest rate, reserve requirement, e.t.c.

Pie3 years ago
4 0

To attract oversea investors and working immigrants

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He has 20
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Based on these​ findings, what can we predict about total production long dash whether or not that production is included in the
Naily [24]

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If the workers had been paying other people to perform the household activities prior to unemployment, then total production will fall.

Explanation:

7 0
2 years ago
Two goods are considered to be related goods by many buyers: if the price of one increases, buyers buy more of the other. This i
vovikov84 [41]

Answer: False.

Explanation:

False.

This indicates that the two goods are substitute goods, not the complementary goods.

In case of complementary goods, the price of one good is inversely related with the demand for other related good. For example, car and petrol; if the price of petrol increases as a result demand for cars decreases.

In case of substitute goods, the price of one good is directly related with the demand for other related good. For example, tea and coffee; if the price of coffee increases as a result demand for tea increases. So, there is a positive relationship between the price of one good and demand for the other good.

3 0
2 years ago
"Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required return on an average stock is 10%, and the risk-free rate o
Kaylis [27]

Answer:

4.5%

Explanation:

Stock R (Beta) = 1.5

Stock S  (Beta) = 0.75

Expected rate of return on an average stock (Rm)= 10%

Risk free rate (Rf) = 4%

Required Return (Re) = Rf +(Rm-Rf) B

Required Return = 0.04 + (0.10-0.04) B

Required Return = 0.04 + 0.06B

Stock R = 0.04 + (0.06 * 1.50)

Stock R = 0.04 + 0.09

Stock R = 0.13

Stock R = 13%

Stock S = 0.04 + (0.06 * 0.75)

Stock S = 0.04 + 0.045

Stock S = 0.085

Stock S = 8.5%

Here, the more risky stock is R and less risky stock is S. Since, R has more beta than the Stock S.

= 13% - 8.5%

= 4.5%

7 0
2 years ago
How does inflation hurt your savings?
siniylev [52]

Answer:

have to spend more money

Explanation:

4 0
2 years ago
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