Consider Two Countries, Hitech and Lotech

question 12

Essay

Consider two countries, Hitech and Lotech. In Hitech new arrangements for making payments, such as credit cards and ATMs, have been enthusiastically adopted by the population, thereby reducing the proportion of income that is held as real money balances. Over this period no such changes occurred in Lotech. If the rate of money growth and the growth rate of real GDP were the same in Hitech and Lotech over this period, then how would the rate of inflation differ between the two countries? Carefully explain your Answer .

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Definitions:

Data Types

The classification of data based on the attributes and behaviors of the data, such as integer, string, or boolean, which defines the operations that can be performed on the data and how it is stored.

Main Routine

In PLC programming, the Main Routine is the essential part of the program that runs continuously in a loop, executing the primary logic and control tasks.

Continuous Tasks

Tasks or processes that run continuously without interruption, often used in industrial automation to monitor and control ongoing operations.