Some countries have had high inflation for a long time. Others have had low or moderate inflation for a long time. Which of the following, at least in theory, could explain why some countries would continue to have high inflation?
a. High inflation countries have relatively small sacrifice ratios and so see no need to reduce inflation.
b. Inflation reduction works best when it is unexpected, and people in high inflation countries would quickly anticipate any change in monetary policy.
c. In a country where inflation has been high for a long time, people are likely to have found ways to limit the costs.
d. In a country where inflation has been high for a long time, there are no costs to the inflation.
c
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In an economy, the number of potential workers is 60,000, the size of the labor force is 45,000, and the number of employed workers is 39,000. Calculate the unemployment rate and labor force participation rate in the country
What will be an ideal response?
Which of the following was the chief source of federal revenues throughout most of the nineteenth century?
a. Income taxes b. Property taxes c. Tariffs d. Inheritance taxes
Countries can expect to gain from international trade as long as they:
A. use trade restrictions to reduce competition for domestic producers. B. keep production diversified. C. specialize according to their comparative advantage. D. produce only those goods for which they have a relatively high opportunity cost.
The amount of interest owed on a loan of $40,000 after a year at an interest rate of 4 percent is:
A. $1,600. B. $40,400. C. $160. D. $41,600.