hange in the monetary base to be a good predictor of the onditions are necessary: shocks to the real economy and

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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18.
In order for the percentual change in the monetary base to be a good predictor of the
inflation rate over the long run, two conditions are necessary: shocks to the real economy and
shocks to regulations should be minor. (True, false, Uncertain). Justify your answer through both
intuition and equations, and give clear explanations on the models/assumptions you rely on.
Transcribed Image Text:18. In order for the percentual change in the monetary base to be a good predictor of the inflation rate over the long run, two conditions are necessary: shocks to the real economy and shocks to regulations should be minor. (True, false, Uncertain). Justify your answer through both intuition and equations, and give clear explanations on the models/assumptions you rely on.
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