Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer these questions.Putting missing words Possible causes of demand-pull inflation include: A in the exchange rate . Fiscal stimulus e.g. via a in direct or
Answer these questions.Putting missing words
Possible causes of demand-pull inflation include: A in the exchange rate . Fiscal stimulus e.g. via a in direct or indirect taxation or government spending. . Monetary stimulus to the economy e.g. a in interest rates.. Faster in other countries. . Rising consumer and businessInvestment . Lower AD, output gap... reduces need for investment Increased debt burden... reduces investment . Increased real rate of interest and fall in on projects (revenue falls) ... reduces investment . Fall in as revenues fall .... reduces investment . Fall in business .... reduces investment . Benign deflation ... increases investment Balance of Payments price competitiveness increases exports and reduces imports improving balance of trade on the current account (UK trade balance example) . Lower investment will reduce competitiveness (UK compared to trading partners) . Falling and lower production reduces imports . Deflation in other countries (examples) will reduce exports as GDP and consumption falls in other countriesStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started