User Account

All Pages

What average annual inflation rate would monetarist expect

Assignment Help Business Economics
Reference no: EM13834867

1) What policy rule do monetarists believe the Fed should follow? What are the major assumptions underlying this policy prescription?

2) What average annual inflation rate would a monetarist expect if the Fed maintained a growth rate of M2 = 10% per year for a three year period? (Assume that the monetarist felt that the long run average growth rate of RGDP was 3%)

Average annual inflation rate = 10-3 =7%

Reference no: EM13834867

Questions Cloud

In the sense that economists use the word : Which of the following represents investment, in the sense that economists use the word?
Velocity of circulation of a monetary aggregate : Why would you expect the velocity of circulation of a monetary aggregate such as M1 or M2 to rise during periods of high interest rates and to decline during periods of low interest rates?
Potential danger of maintaining rigid interest rate target : Those who advocate that the Fed target monetary aggregates, usually argue that the Fed should not alter its monetary targets in response to temporary changes in macroeconomic conditions, yet those who advocate interest rate targeting never recommend ..
Excessively rapid growth in the money supply : Why might M1 and M2 grow at very different rates during a given year? If excessively rapid growth in the money supply is associated with all inflationary episodes, why do central banks ever allow the money supply to increase so rapidly?
What average annual inflation rate would monetarist expect : What policy rule do monetarists believe the Fed should follow? What are the major assumptions underlying this policy prescription? What average annual inflation rate would a monetarist expect if the Fed maintained a growth rate of M2 = 10% per year f..
Anti-poverty programs : Anti-poverty programs
Monopolist is earning positive profit after wage increase : A profit maximizing monopolist is earning a positive economic profit. The wage it pays its workers rises. How will the firm's choice of price and quantity change in response to the wage increase? Assume that the monopolist is still earning a positive..
Standard labor-hours per unit of output is closest : Churdle Corporation makes a single product. In a recent period 4,080 units were made and there was an unfavourable labor efficiency variance of $26,800. Direct labor workers were paid $8 per hour and total wages were $190,000. The labor rate variance..
Explain and draw the market and then the typical firm : In a perfectly competitive market, demand for hairbrushes goes down. How does the market and a typical firm respond in the short and long run? Explain and draw the market and then the typical firm (two drawings, one for market, one for firm)

Reviews

Write a Review

Business Economics Questions & Answers

  Think the attitudes and bargaining behaviors

Do you think the attitudes and bargaining behaviors of the participants in collective bargaining negotiations are more or less important in the final outcome than economic conditions and factors? Why?

  Illustrate what is the corresponding marginal cost function

illustrate what is the corresponding marginal cost function. at illustrate what o/p is AVC at its minimum.

  Demographic trend that has caused dramatic increases

Currently in the US there is a demographic trend that has caused dramatic increases in the number of students attending universities. The children of Baby Boomers have grown up and are ready for college.

  What are the major characteristics of helping those in need

What are the major characteristics of helping those in need in America? What do you think has been the biggest change over the past five decades?

  Find the arithmetic mean-median and mode

Listed below are the weekly sales from the household department at a local discount store: $35,000, $46,000, $28,000, $35,000, $68,000, and $52,000. Find the Arithmetic Mean, Median, and Mode.

  Elucidate and show any relevant calculations

One person using one computer can produce 11,000 typed pages per year, and the price per page for your service is $2. Depends on the costs and revenues above, which should you do. Elucidate and show any relevant calculations.

  Another investor be willing to pay for your security

Suppose that one year has elapsed, you have received the first payment of 600$, and the market interest rate is still 5%. How much would another investor be willing to pay for your security?

  Explain how much will kris''s payments be

if the original amount of loan is for $24000 and interest is 1/2% per month on the unpaid balance, explain how much will Kris's payments be.

  Largest distillers of premium scotch liquor

Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market..

  Cournot model of oligopoly differ from the stackelberg model

How does the Cournot model of oligopoly differ from the Stackelberg model?

  What the market price is given the price leaders output

Compute the profit-maximizing output for the price leader. Illustrate what the market price is given the price leader's output in (c). Elucidate how much does each competitive firm produce.

  What percentile did you score in

the top ten percentile cutoff was 95 points. a. What is the standard deviation for the class? b. What percentile did you score in?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd