Under financial repression ? I- banks engage in non-price rationing of loans II- banks face pressure for loans to those with political connections III- banks charge a high premium on foreign investments IV- banks depend on foreign banks to set…

Which of the following are costs of inflation ? I- inflation weakens the creation of credit and capital markets II- inflation distorts business behavior especially investment behavior III- inflation increase the price of foreign goods relative to domestic goods IV-…

When the financial system lacks the capability of making judgement about investment opportunities due to asymmetric information leading to potentially bad credit risks lending is subject to ? A. adverse selection B. moral hazard C. social goods D. hyperinflation

Demand pull inflation result from ? A. demand for government spending on public goods goes due to lack of financial backup through tax collectionB. consumer business and government demand for goods and services in excess of an economy’s capacity to…

During Stagflation ? I- an increase in aggregate spending will eliminate the recession II- a decrease in aggregate spending will reduce inflation III- government faces contradictory goals IV- the central bank decease money supply to reduce inflation A. I and…