In 2019, the inflation rate was two percent, the output gap was two percent, there were no random shocks and the value of = 1. The inflation rate in 2020 should be _____ percent.

a.

4.

b.

2.

c.

5.

d.

3.

Deposits at financial institutions other than banks is part of ____.

a.

All of the other options are correct.

b.

M1B

c.

M2+

d.

M2

If a country is committed to a fixed exchange rate, its monetary policy can focus on...

a.

None of the other options.

b.

Stabilising domestic inflation.

c.

Controlling the domestic money supply.

d.

Eliminating domestic output gaps.

Thanks for helping !