As a manager of a firm, you are concerned about the rise of inflation rate from...

 

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As a manager of a firm, you are concerned about the rise of inflation rate from 3 to 5 percent (annualized) over the last four months despite the growth of the economy. Explain TWO (2) effects of inflation to Malaysian economy. Given the above situation should BNM adjust the monetary policy? Is so, explain the appropriate monetary policy BNM would use. Be sure to discuss how the monetary policy would be able to manage inflation while managing economic growth. a. b. Question 3 Discuss TWO (2) risks face by commercial bank with asymmetric information. a. b. Discuss how the above risk can be managed by commercial bank. As a manager of a firm, you are concerned about the rise of inflation rate from 3 to 5 percent (annualized) over the last four months despite the growth of the economy. Explain TWO (2) effects of inflation to Malaysian economy. Given the above situation should BNM adjust the monetary policy? Is so, explain the appropriate monetary policy BNM would use. Be sure to discuss how the monetary policy would be able to manage inflation while managing economic growth. a. b. Question 3 Discuss TWO (2) risks face by commercial bank with asymmetric information. a. b. Discuss how the above risk can be managed by commercial bank.

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a Effects of Inflation on the Malaysian Economy Reduced Purchasing Power Inflation erodes the purchasing power of the Malaysian currency leading to a decrease in the value of money As prices rise cons... View the full answer