Question
Please help with a few Macroeconomics questions: Suppose people expect inflation to be 2.5%, but prices actually rise by 5%. Will this unexpectedly high inflation
Please help with a few Macroeconomics questions:
- Suppose people expect inflation to be 2.5%, but prices actually rise by 5%. Will this unexpectedly high inflation help or hurt the following groups? Explain why.
a). a union worker in the fourth year of their labor contract
b) a university that has invested some of its endowment in government bonds
2.Will each of the following transactions affect US net exports of US net capital outflow? Indicate whether NX or NCO will increase or decrease as a result of each transaction. a) An American buys a Toshiba laptop b) An American purchases a share of Toshiba stock c) The Toshiba pension fund buys a bond from the US Treasury d) An employee at Toshiba's headquarters in Tokyo buys a Ford Mustang
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