Suppose an economy experiences an increase in inflation. Explain the possible macroeconomic benefits of this increase in inflation
What will be an ideal response?
Answers should include discussions of: seignorage, the option of a negative real interest rate, and money illusion.
Economics
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Personal income equals disposable personal income plus:
a. personal income taxes. b. transfer payments. c. dividend payments d. personal savings.
Economics
A firm that faces a high-demand period followed by a low-demand period must determine all of the following for peak-load pricing except which one?
A) short-term off-peak price B) short-term peak quantity C) long-run capacity D) long-term off-peak quantity
Economics