Question: Answer these questions 5. Briefly explain using a numerical example why higher inflation is beneficial to those with a high level of debt. 6. Explain

Answer these questions

Answer these questions 5. Briefly explain using a numerical example why higherinflation is beneficial to those with a high level of debt. 6.

5. Briefly explain using a numerical example why higher inflation is beneficial to those with a high level of debt. 6. Explain using a logical chain of reasoning and a diagram, how a fall in the exchange rate can cause cost-push inflation.7. Explain using two AD+AS diagrams why using interest rates to reduce cost-push inflation is more damaging to the economy than using interest rates to reduce demand-pull inflation

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