Question 3 (45 points). Briefly answer the following questions: 2. What will happen to the demand for
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Question 3 (45 points). Briefly answer the following questions:
2. What will happen to the demand for fiat money, the nominal interest rate and the real interest rate if the government tries to use inflation to default on the national debt in: (15 points)
(a) every other year? Explain.
(b) randomly selected years? Explain.
Please answer 2 (a) and (b) Thanks
Related Book For
Modeling Monetary Economies
ISBN: 978-1107145221
4th Edition
Authors: Bruce Champ, Scott Freeman, Joseph Haslag
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