Question

As the average annual inflation rate_____, the volatility of inflation tends to ______. a) decreases; increase...

As the average annual inflation rate_____, the volatility of inflation tends to ______.

a) decreases; increase

b) increases; increase

c) increases; remain stable

d) decreases; remain stable

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

As the average inflation level decreases the currency becomes more and more stable and as a result of this the volatility of inflation reduces all in all. This makes the currency more suitable for investment and as a result of this many of the countries can take interest in investing in that country with which the economy flourishes and reverse is the case as if annual inflation increases, then volatality increases

Therefore (b) is the answer to this question

answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following statements is FALSE? a) The volatility of a portfolio tends to decrease...
Which of the following statements is FALSE? a) The volatility of a portfolio tends to decrease with the number of stocks that it contains. b) Fluctuations in the price of a stock due to news that affects all firms in the economy are not diversifiable. c) Fluctuations in the price of a stock due to news that only affect its associated company are diversifiable. d) The empirical evidence shows that the larger the volatility of a stock or portfolio of...
as song sparrow population density increase a. the average reproductive success of individual song sparrows tends...
as song sparrow population density increase a. the average reproductive success of individual song sparrows tends to increase b. the average reproductive success of individual song sparrows tends to decrease c. the average reproductive success of individual song sparrows does not change d. the average reproductive success of individual song sparrows is unpredictable
1. If taxes A. increase, consumption increases, aggregate demand shifts right B. increase, consumption decreases, aggregate...
1. If taxes A. increase, consumption increases, aggregate demand shifts right B. increase, consumption decreases, aggregate demand shifts left C. decrease, consumption increases, aggregate demand shifts left D. decrease, consumption decreases, aggregate demand shifts right 2. When the interest rate increases, the opportunity cost of holding money A. increases, so the quantity of money demanded increases. B. increases, so the quantity of money demanded decreases. C. decreases, so the quantity of money demanded increases. D. decreases, so the quantity of...
With free trade, it ______: a. tends to increase the price of products b. tends to...
With free trade, it ______: a. tends to increase the price of products b. tends to decrease the price of products c. has no impact on the price of products d. tends to reduce the consumption of products
Taxes on Stocks and Inflation. Because they use mortgages to buy? homes, most homeowners are debtors....
Taxes on Stocks and Inflation. Because they use mortgages to buy? homes, most homeowners are debtors. Homeowners A. lose from unanticipated inflation because it will be harder for them to repay their loans with inflated dollars.?? B. gain from unanticipated inflation because it will be easier for them to repay their loans with inflated dollars.?? C. lose from anticipated inflation because it will be harder for them to repay their loans with inflated dollars.?? D. gain from anticipated inflation because...
AS in the Short Run (Range 2 of AS): There is an increase in U.S. wealth...
AS in the Short Run (Range 2 of AS): There is an increase in U.S. wealth Question 1)      a) AD increases      b) AD decreases      c) AS increases      d) AS decreases Question 2)      a) GDP growth rises      b) GDP growth falls      c) GDP growth remains unchanged Question 3)      a) unemployment rises      b) unemployment falls      c) unemployment remains unchanged Question 4)      a) inflation increases      b) inflation decreases      c) inflation...
AS in the Immediate Short Run (Range 1 of AS): Scenario: There is an increase in...
AS in the Immediate Short Run (Range 1 of AS): Scenario: There is an increase in U.S. government spending Question 1)      a) AD increases      b) AD decreases      c) AS increases      d) AS decreases Question 2)      a) GDP growth rises      b) GDP growth falls      c) GDP growth remains unchanged Question 3)      a) unemployment rises      b) unemployment falls      c) unemployment remains unchanged Question 4)      a) inflation increases      b) inflation decreases...
Aggregate supply in the short run (Range 2 of AS) Scenario: There is an increase in...
Aggregate supply in the short run (Range 2 of AS) Scenario: There is an increase in the tax rate on consumers. Question 1) a. AD increases b. AD decreases c. AS increases d. AS decreases Question 2) a. GDP growth rises b. GDP growth falls c. GDP remains unchanged Question 3) a. unemployment rises b. Unemployment falls c. unemployment unchanged Question 4) a. inflation increases b. inflation decreases c. inflation unchanged
What would result in an increase in the Accounts Receivable days? a. Net income decreases. b....
What would result in an increase in the Accounts Receivable days? a. Net income decreases. b. Net Accounts Receivable increases. c. Number of days in the period decreases. d. Net sales increases.
Average variable cost A. decreases when its value is greater than marginal cost, and increases when...
Average variable cost A. decreases when its value is greater than marginal cost, and increases when its value is less than marginal cost. B. decreases when its value is less than marginal cost, and increases when its value is greater than marginal cost. C. is perpetually increasing, sometimes initially at increasing rates but eventually at decreasing ones. D. perpetually decreases. Average fixed costs A. are perpetually decreasing as output increases, but at a decreasing rate. B. are perpetually decreasing as...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT