## Answers

output growth rate in US is = 2%

money demand L = constant

money supply growth rate = 4%

output growth rate in china = 5%

money supply growth = 9%

a. inflation = 9-5 = 4%

growth rate of dollar china exchange rate = (4-2)/2*100

= 1*100%

= 100%

b.

it fixes inflation rate equal to inflation rate in US, that is 2%.

Money supply growth rate in China = 5 + 2 = 7%

c.

Growth rate of output + growth rate of price level = growth rate of Money stock + growth rate of velocity of money

2% + Rate of inflation = (4% + 1%) + 0%

Rate of inflation = 5% - 2%

= 3%

Hence, inflation in the economy is moving at 3 percent annually.

.#### Similar Solved Questions

1 answer

##### Just part c please 2,) Using the Pb - Sn phase diagram, at the points indicated...

Just part c please 2,) Using the Pb - Sn phase diagram, at the points indicated below, determine the followhg draw tie lines and indicate important values on diagram) I. The phases present II. The composition of each phase I. The relative amounts of each phase(expressed in weight percentages) 182&d...

1 answer

##### According to a recent survey 60% of households have personal computers. If a random sample of...

According to a recent survey 60% of households have personal computers. If a random sample of 180 households is selected, what is the probability that fewer than 100 have a personal computer. Approximate Binomial by Normal distribution...

1 answer

##### 2. The community health nurse is preparing a program about hypertension for a local community center....

2. The community health nurse is preparing a program about hypertension for a local community center. The focus of the program is on the reduction of risk factors and compliance for those who have been diagnosed with high blood pressure. The target population includes older adults (Learning Objectiv...

1 answer

##### 27 If two currencies are traded in a flexible exchange rate system and one nation experiences...

27 If two currencies are traded in a flexible exchange rate system and one nation experiences higher inflation than another, what should happen to the exchange rate? What is the economic logic behind this answer?...

1 answer

##### Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively...

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budge...

1 answer

##### 1 . Describe the chemistry of the group 14 elements with reference to (i) decreasing catenation,...

1 . Describe the chemistry of the group 14 elements with reference to (i) decreasing catenation, (ii) increased metallic behaviour on descending the group and (iii) the relative stability of the +2 and +4 oxidation states. 2. Discuss with relevant examples how the stability of the +2 oxidation state...

1 answer

##### A charged particle traveling at a given speed enters a uniform magnetic field. The velocity vector...

A charged particle traveling at a given speed enters a uniform magnetic field. The velocity vector of the particle is perpendicular to the magnetic field. Which of the following particle properties will change while in the magnetic field? a) Its speed b) Its velocity c) Its kinetic energy d) All of ...

1 answer

##### Problem 16-09 a-b Shamrock Corporation is preparing the comparative financial statements to be included in the...

Problem 16-09 a-b Shamrock Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Shamrock employs a fiscal year ending May 31. Income from operations before income taxes for Shamrock was $1,277,000 and $724,000, respectively, for fiscal ye...

1 answer

##### Stem cell research has alternatives to embryonic cells; What is one alternative? 3. What is the...

Stem cell research has alternatives to embryonic cells; What is one alternative? 3. What is the veil of ignorance about? d ont really see the teo outcue w would the ethical theory of Consequentialism deal with the needle exchange program, would it ydisalow or allow this, please explain why or wh...

1 answer

##### Design a Moore circuit for converting NRZ coding to Manchester coding scheme. Complete the design by...

Design a Moore circuit for converting NRZ coding to Manchester coding scheme. Complete the design by using T flip flops. Make sure to include the state graph, state transition table, and design of the T flip flop circuit with the inputs....

1 answer

##### Please help with part C, D, and E. Thank you! Stocks A and B have the...

Please help with part C, D, and E. Thank you! Stocks A and B have the following historical returns: Stock B's Returns, le (13.40%) Year Stock A's Returns, A 2014 (21.50%) 2015 39.75 2016 11.25 2017 (1.00) 2018 26.25 a. Calculate the average rate of return for each stock during the period 201...

1 answer

##### Vectors A and B lie in an xy plane. A has magnitude 8.5 and angle 101...

Vectors A and B lie in an xy plane. A has magnitude 8.5 and angle 101 degrees relative to +x direction; B has components Bx= -8.32 and By= -6.42. What are the angles between the negative direction of the y axis and (a) the direction of A (b) the direction of the product A x B, and (c) the direction ...

1 answer

##### How do you write #(3x^4 - 4x^3 - 5x^2 - 1) + (7x^4 - 6x^3 -7x^2 - 8)# in standard form?

How do you write #(3x^4 - 4x^3 - 5x^2 - 1) + (7x^4 - 6x^3 -7x^2 - 8)# in standard form?...

1 answer

##### Exam #2 Review I. Which of the following would not affect the units required to break-even?...

Exam #2 Review I. Which of the following would not affect the units required to break-even? a. number of units actually sold b. variable expense per unit e. total fixed expense d. selling price per unit 2. Which of the following would be more likely produce a labor efficiency variance? a. Using less...

1 answer

##### In the laboratory a "coffee cup" calorimeter, or constant pressure calorimeter, is frequently used to determine...

In the laboratory a "coffee cup" calorimeter, or constant pressure calorimeter, is frequently used to determine the specific heat of a solid, or to measure the energy of a solution phase reaction. A chunk of copper weighing 18.61 grams and originally at 98.53 °C is dropped into an ins...