What is likely to happen if a central bank suddenly prints a large amount of new money?
What will be an ideal response?
Whereas there are theories that predict that changes in the supply of money have real effects on the economy in the short run, it is likely that if the central bank showers the economy suddenly with money, the only result will be higher inflation. This is because the demand for money ultimately depends on the amount of real transactions in the economy and how much money is needed to facilitate these transactions. Additional supply of money is unlikely to make people consume more or work harder.
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The present value of a future amount depends on two variables: the interest rate and the number of periods
Indicate whether the statement is true or false
In situations where the respondents are expected to have no opinions, as opposed to simply being reluctant to disclose it, the accuracy of data may be improved by a non-forced scale that includes a "no opinion" category
Indicate whether the statement is true or false
Following public revelations of pressures on bank staff to set up fraudulent accounts in order to reach sales quotas, the CEO of Wells Fargo Bank was forced to apologize to and recompense customers for whom the bank had set up false credit card and auto loan accounts. As a consequence, over 100,000 account managers were terminated, a $186 million fine was paid to the U.S. government, the CEO was forced to resign, and the company's stock price also sharply declined. Which of the following costs did Wells Fargo incur?
A. internal administrative costs, tangible costs, and intangible costs B. internal administrative costs but not visible costs C. visible but not intangible costs D. only visible and internal administrative costs E. visible and intangible costs
The type of funds most frequently used by businesses is externally generated funds.
Answer the following statement true (T) or false (F)