FINANCE 460- A wage-price spiral can occur when
Offered Price: $ 3.00 Posted By: Posted on: 02/03/2017 12:35 AM Due on: 02/03/2017
1. A wage-price spiral can occur when:
- a. there is unemployment and an increase in money supply.
- b. there is unemployment and low aggregate demand in the economy.
- c. there is full-employment and low aggregate demand in the economy.
- d. there is full-employment of resources and an increase in money supply.
- e. there is unemployment and a decrease in money demand.
- 2. It has been argued that the exchange rate can be used as a policy tool. Assume that the U.S. government would like to reduce inflation. Which of the following is an appropriate action given this scenario?
- 3. A decrease in the expected exchange rate E$/£ecauses: