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rubyzebra674Lv1
28 Sep 2019
In the long-run equilibrium, Country A has an interest rate of 10%, whereas Country B has an interest rate of 7%. Real output in each country is growing at 2% per year. The money growth rate in Country B is 6%.
a. Which country has a higher inflation rate?
b. Which country has a higher real interest rate?
c. Which is the inflation rate in Country B?
d. What is the inflation rate and money growth rate in Country A?
In the long-run equilibrium, Country A has an interest rate of 10%, whereas Country B has an interest rate of 7%. Real output in each country is growing at 2% per year. The money growth rate in Country B is 6%.
a. Which country has a higher inflation rate?
b. Which country has a higher real interest rate?
c. Which is the inflation rate in Country B?
d. What is the inflation rate and money growth rate in Country A?
8 Jan 2023
Joshua StredderLv10
28 Sep 2019
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