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Category > Economics Posted 08 May 2017 My Price 5.00

Suppose that a country’s inflation rate increases sharply

 

  1. Suppose that a country’s inflation rate increases sharply. What happens to the inflation tax on the holders of money? Why is wealth that is held in savings accounts not subject to a change in the inflation tax? Can you think of any way in which holders of savings accounts are hurt by the increase in the inflation rate?

  2. Hyperinflations are extremely rare in countries whose central banks are independent of the rest of the government. Why might this be so?

 

 

 
 

Answers

(8)
Status NEW Posted 08 May 2017 09:05 AM My Price 5.00

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