Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A3. In Brazil, a recently introduced digital payment system, called Pix, has enabled individuals to pay the merchants quickly and at zero cost via QR

image text in transcribed
A3. In Brazil, a recently introduced digital payment system, called Pix, has enabled individuals to pay the merchants quickly and at zero cost via QR codes. This system has been quickly adopted by over a 100 million people, reducing their demand for cashl. a) Assuming that this was a temporary shock, analyze the short run results of this innovation on the Brazilian output and the ERS.-"Euro graphicale {assuming there is no pohcy response) using the AADD model. Explain the mechanisms verbally b) 'What should the government of Brazil do to stabilize the output at its short run level before the innovation occurred? Explain graphically and verbally

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

9781292016924

Students also viewed these Economics questions

Question

Integrate the following I (3x + 5)dx

Answered: 1 week ago