A. Why is inflation bad? What is hyperinflation inflation? Also explain the role of monetary and fiscal policy in causing and ending hyperinflation.B. Suppose V is constant, M is growing 7% per year, Y is growing 3% per year, and r = 4.a) Solve for i.b) If the Central Bank increases the money growth rate by 3 percentage points per year, find ?i.c) Suppose the growth rate of Y increases to 2% per year.? What will happen to ?? What must the CB do if it wishes to keep ??constant?

A. Why is inflation bad? What is hyperinflation inflation? Also explain the role of monetary and fiscal policy in causing and ending hyperinflation. B. Suppose V is constant, M is growing 7% per year, Y is growing 3% per year, and r = 4. a) Solve for i. b) If the Central Bank increases the money growth rate by 3 percentage points per year, find Bi. c) Suppose the growth rate of Y increases to 2% per year. . What will happen to It? . What must the CB do if it wishes to keep It constant