Question

true or false A MNC OR MNF MUST HJAVE LOCATIONS IN OTHER COUNTRIES AND DO BUSINESS...

true or false

  1. A MNC OR MNF MUST HJAVE LOCATIONS IN OTHER COUNTRIES AND DO BUSINESS WITH OTHER NATIONS.

  1. DEFLATION GENERALLY DOES NOT OCCUR DURING ECONOMIC GROWTH.

  1. STAGFLATION IS WORST THAN HPERINFLATION.

  1. INCREASING M2 CONTRIBUTES TO INFLATION PROBLEMS.

  1. THE PHILLIPS CURVE HAS A NEGATIVE SLOPE BECAUSE AS INFLATION GOES UP, UNEMPLOYMENT GOES DOWN.

Homework Answers

Answer #1

1 - True

MNC and MNF are established to work in more than 1 nation

2 - True

During the growth , generally the inflation occurs and not deflation.

3 - True

Stagflation has two problem of rising inflation and also rising unemployment with fall in output. Hence it is more difficult to control.

4 - False

Increase in M1 gives the inflation problem as it deals with the currency in circulation in economy

5 - False

The philips curve will slope down due to higher unemployment and lower inflation.

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