If Inflation in New Zealand Suddenly Increased While Euro Area

question 1

Multiple Choice

If inflation in New Zealand suddenly increased while euro area inflation stayed the same, there would be:

• A) an inward shift in the demand schedule for NZ$ and an outward shift in the supply schedule for NZ$.
• B) an outward shift in the demand schedule for NZ$ and an inward shift in the supply schedule for NZ$.
• C) an outward shift in the demand schedule for NZ$ and an outward shift in the supply schedule for NZ$.
• D) an inward shift in the demand schedule for NZ$ and an inward shift in the supply schedule for NZ$.

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Definitions:

Managers Attitude

The disposition or mindset of managers towards adopting business strategies, leading employees, and making decisions.

Commit

To pledge or bind an organization or individual to a certain course of action or level of financial support.

Undesired Outcome

A result or consequence that deviates negatively from what was intended or expected.

Increased Efficiencies

Improvements that result in a higher output of goods or services for the same or lower input of resources, often through better management practices, technology, or processes.