contestada

consider kharkeez, a hypothetical country that produces only burgers. in 2019, a burger is priced at $4.00. complete the first row of the table with the quantity of burgers that can be bought with $700. hint: in this problem, assume it is not possible to buy a fraction of a burger, and always round down to the nearest whole burger. for example, if your calculations result in 1.5 burgers, the answer should be 1 burger. year price of a burger burgers bought with $700 (dollars) (quantity) 2019 4.00 2020 suppose the government of kharkeez cannot raise sufficient tax revenue to pay its debts. in order to meet its debt obligations, the government prints money. as a result, the money supply rises by 20% by 2020. assuming monetary neutrality holds, complete the second row of the table with the new price of a burger and the new quantity of burgers that can be bought with $700 in 2020. the impact of the government's decision to raise revenue by printing money on the value of money is known as the .

Respuesta :

The value of money is  145 burgers . money on the value of money is known as the inflation tax.

What does inflation mean in plain English?

The rate at which prices increase over a specific time period is known as inflation. Inflation is often measured in broad terms, such as the general rise in prices or the rise in a nation's cost of living.

2017

price of burgers is 4 and total spending is 700

quantity of burgers = spending/price = 700/4 = 175

2018Price of burger in 2018 = (1+inflation)*price 2017

= 1.2*4 = 4.8

Thus, quantiity 2018 = 700/4.8 = 145.8 = 145 burgers

The impact of the government's decision to raise revenue by printing money on the value of money is known as the inflation tax.

Learn more about inflation

brainly.com/question/29347039

#SPJ4