« previous next »

Author Question: In a period of hyperinflation, the velocity of circulation increases because A) the real interest ... (Read 30 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?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Detail of the Chinese-style gate of Nishi Hongan-ji in Kyoto; Momoyama period; National Treasure Detail of the Chinese-style gate of Nishi Hongan-ji in Kyoto; Momoyama period; National Treasure
Time Line of Human History From Upper Paleolithic Period to the Present Time Line of Human History From Upper Paleolithic Period to the Present
How to calculate compound interest (Part 2) How to calculate compound interest (Part 2)
Embryonic Period Embryonic Period
Systemic Circulation Systemic Circulation
What is the maximum velocity (in km/s) of a photoelectron emitted from a surface whose work ... What is the maximum velocity (in km/s) of a photoelectron emitted from a surface whose work ...
Video: Stages of Mitosis - Prophase, Prometaphase, Metaphase, Anaphase & Telophase

For a complete list of videos, visit our video library