Suppose that people expect inflation to equal 3 percent, but in fact prices rise by 5…
Compare and evaluate the effectiveness of government intervention in controlling private housing prices and increasing housing supply in Shanghai and Hong Kong between 2010 and 2013, and explain the major differences in performance.
August 7, 2017Aircraft accidents
August 7, 20171. Suppose that people expect inflation to equal 3 percent, but in fact prices rise by 5 percent. Describe how this unexpectedly high inflation rate would help or hurt the following: a. the government b. a homeowner with a fixed-rate mortgage c. a union worker in the second year of a labor contract d. a college that has invested some of its endowment in government bonds 2. Recall that money serves three functions in the economy. What are those functions? How does inflation affect the ability of money to serve each of these functions?
