a) Explain the following terms: i. Moderate inflation 11. Galloping inflation 111. Hyper inflation b) Assuming...

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a) Explain the following terms: i. Moderate inflation 11. Galloping inflation 111. Hyper inflation b) Assuming the money supply (m) is defined as the sum of currency (c) plus deposits (D); M = C + D (2 marks) (2 marks) (2 marks) Required: Derive the money multiplier in terms of the currency and reserve ratio (8 marks) c) Seignorage revenue is an inflationary method of financing fiscal deficit but under certain circumstances. It is preferred to other option. Provide a detailed explanation of what seignorage revenue is Under what circumstances is seignorage revenue preferred. i. 11. (3marks) (3 marks) a) Explain the following terms: i. Moderate inflation 11. Galloping inflation 111. Hyper inflation b) Assuming the money supply (m) is defined as the sum of currency (c) plus deposits (D); M = C + D (2 marks) (2 marks) (2 marks) Required: Derive the money multiplier in terms of the currency and reserve ratio (8 marks) c) Seignorage revenue is an inflationary method of financing fiscal deficit but under certain circumstances. It is preferred to other option. Provide a detailed explanation of what seignorage revenue is Under what circumstances is seignorage revenue preferred. i. 11. (3marks) (3 marks)

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a i Moderate inflation Moderate inflation refers to a sustained increase in the general price level of goods and services in an economy but at a relatively stable and controlled rate It is characteriz... View the full answer