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Economics

Inflation, deflation and discretionary fiscal policy

Questions:

1. Explain the various types of inflation and its consequences. Suppose you borrow $1000 from a bank at 5% interest for one year and the inflation rate that year is 10%. Was this loan advantageous to you or to the bank?

2. Explain two limitations of the discretionary fiscal policy.

3. Describe the difference between inflationary gap and deflationary gap.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9200921

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