Consider an Economy That Has the Following Monetary Data

question 29

Multiple Choice

Consider an economy that has the following monetary data.

The monetary base and the money supply are expected to grow at a constant rate of 20% per year.Inflation and expected inflation are 20% per year.Suppose that bank reserves and currency pay no interest,all currency is held by the public,and bank deposits pay no interest.What is the cost to the public of the inflation tax?

• A)$60
• B)$140
• C)$190
• D)$200

Understand the role of audience analysis in preparing and delivering bad news messages.

Differentiate between situations that require a direct versus an indirect approach in delivering bad news.

Recognize the importance of offering alternatives or compromises when delivering bad news.

Appreciate the necessity of establishing a record and confirming follow-up procedures when delivering bad news in writing.