« previous next »

Author Question: In a period of hyperinflation, the velocity of circulation increases because A) the real interest ... (Read 23 times)

gbarreiro

  • Hero Member
  • *****
  • Posts: 566
on: Jun 29, 2018
In a period of hyperinflation, the velocity of circulation increases because
 
  A) the real interest rate rises.
  B) households and firms spend money as soon as they receive payment.
  C) the nominal interest rate decreases.
  D) money is valuable everyone wants it.
  E) potential GDP increases.

Question 2

Distinguish the current account from the financial account.
 
  What will be an ideal response?


carojassy25

  • Sr. Member
  • ****
  • Posts: 299
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

The current account is the sum of net exports, net income received from investments abroad, and net transfers from abroad. The financial account is the difference between foreign purchases of U.S. assets and U.S. purchases of foreign assets.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

Essential fatty acids have been shown to be effective against ulcers, asthma, dental cavities, and skin disorders such as acne.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
A parade for Grover Cleveland in Chicago in 1892, by John Klir. Music, mirth, real drama—a president A parade for Grover Cleveland in Chicago in 1892, by John Klir. Music, mirth, real drama—a president
Graph showing how the boiling point of the coolant increases as the percentage of antifreeze in ... Graph showing how the boiling point of the coolant increases as the percentage of antifreeze in ...
El Niño, La Niña, and the Walker Circulation El Niño, La Niña, and the Walker Circulation
Absorption of a drug through cell membranes into the bloodstream (systemic circulation). The drug ... Absorption of a drug through cell membranes into the bloodstream (systemic circulation). The drug ...
Please advise 'How To' on Real Estate Math problem (Answer Provided)? Please advise 'How To' on Real Estate Math problem (Answer Provided)?
Video: Polymerase chain reaction PCR - Animation

For a complete list of videos, visit our video library