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Taya2010 [7]
3 years ago
15

Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased fr

om 4.8% to 6.2%. The sacrifice ratio is:______
a. 2
b. 1
c. 0.5
d. none of the above
Business
1 answer:
andreyandreev [35.5K]3 years ago
6 0

Answer:

Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased from 4.8% to 6.2%. The sacrifice ratio is:______

d. none of the above

Explanation:

a) Data and Calculations:

Old inflation rate = 3%

New inflation rate = 1.6%

Old unemployment rate = 4.8%

New unemployment rate = 6.2%

Ratio of old inflation rate to old unemployment rate = 3 : 4.8 = 0.625

Ratio of new inflation rate to new unemployment rate = 1.6% : 6.2% = 0.258

Sacrifice ratio = Difference between the two ratios = 0.367 (0.625 - 0.258)

b) The sacrifice ratio is the difference between the old ratio and the new ratio of inflation rate to unemployment rate.

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If, in the market for money, the amount of money supplied exceeds the amount of money households and businesses want to hold, th
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If the required quantity is above the amount given, people sell the property to obtain money like bonds. It leads to an increase in bond supply, a drop in bond prices and a higher market interest rate. If the volume supplied meets the necessary number, capital is increasing by purchasing a certain property, such as bonds.

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3 years ago
Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a
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Answer:

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Explanation:

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Zigmanuir [339]

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Read more here:

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