76 868
Assignments Done
Successfully Done
In June 2019

Answer to Question #63853 in Macroeconomics for steve rogers

Question #63853
Suppose the United states experiences stagflation where price level and inflation increase. in the forex market, will the supply of usd increase due to an increase in imports of cheaper foreign goods, or will the supply decrease due to the increased unemployment?
Expert's answer
I think, the basic idea is to decrease due to the increased unemployment, because it will cause cuts in public spending should reduce the government deficit and thereby limit the growth of the money supply, as a result, begin to decrease inflation. This activities of the government help the country to get out of the economic crisis.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

Privacy policy Terms and Conditions