« previous next »

Author Question: In a period of hyperinflation, the velocity of circulation increases because A) the real interest ... (Read 76 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?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

(A) Fetal circulation; (B) postnatal circulation. (A) Fetal circulation; (B) postnatal circulation.
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
Embryonic Period Embryonic Period
Embryonic Period Embryonic Period
Embryonic Period - 12th week Embryonic Period - 12th week
Systemic Circulation Systemic Circulation
Video: Alzheimer's Disease

For a complete list of videos, visit our video library