[Online Document Assignment:]
EIA Activity: International Evidence of Monetary Neutrality
Click on the links on the right to answer the following questions.
Use Link 1 to answer the following questions. True or False: From 2004 through2014, the annual inflation rate was highest in 2007.
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True or False: From 2004 through2014, the annual inflation rate was lowest in 2008.
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Use Link 2 to answer the following question. True or False: The inflation rate was 23.7% in June 1920.
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Use Link 3 to answer the following question. True or False: From 1958 through 2014, the inflation rate averaged 5%in Japan.
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Use Link 4 to answer the following question. True or False: From 1986 through2014, the inflation rate averaged 10% in China.
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B. |
Does printing money cause inflation? Yes or no? Explain.
Should the Federal Reserve set an inflation rate target each year? Yes or no? Explain.
Discuss the pros and cons of setting inflation rate targets.
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