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Inflation, deflation and discretionary fiscal policy

problems:

1.describe 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.describe two limitations of the discretionary fiscal policy.

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

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M924782

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