« previous next »

Author Question: In a period of hyperinflation, the velocity of circulation increases because A) the real interest ... (Read 80 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?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

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?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

The Real Reason Why They Repeat the Same 20 Songs on the Radio & TV Nationwide The Real Reason Why They Repeat the Same 20 Songs on the Radio & TV Nationwide
Spirituality increases with age, but there are different patterns for the two genders. Both genders ... Spirituality increases with age, but there are different patterns for the two genders. Both genders ...
How to write a sine function when given the amplitude, period, and phase shift How to write a sine function when given the amplitude, period, and phase shift
Embryonic Period Embryonic Period
Coronary Circulation Coronary Circulation
Polyploidy increases fruit size Polyploidy increases fruit size
Video: Inflammatory response Animation

For a complete list of videos, visit our video library