Intermediate Macroeconomics

| June 29, 2015

Why is the theory of inflation that we have learnt in the class called classical theory?

 

Give an example of a transaction whose value does not qualify as a part of nominal GDP. Also give an example where it does.

 

Suppose that the velocity of money is constant. Now, real GDP grows by 5% per year, the money stock grows by 14% per year and the nominal interest rate is 11%. Calculate the real interest rate.

 

Suppose a country has a money demand function (M/P)d= kY, where k is a constant parameter. The money supply grows by 12% per year and the real income grows by 4% per year.

 

Define seigniorage. Suppose Fed prints one thousand $10 bills incurring a cost of $0.5/bill. What is the seigniorage here?

Define inflation tax

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International trade and finance slap
Economic Environment of Business

Category: Economics

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