Macroeconomic
Assignment 3 Questions: Chapter 15, 17 & 18
What is the inflation tax, and how might it explain the creation of inflation by a central bank? (2.5 Marks)
Suppose a resident of Canada buys some machine tools from a company in Japan. Explain why and in what directions this changes Canada net exports and Canada net capital outflow. (2.5 Marks)
Explain what is the inflation tax, and how might it explain the creation of inflation by a central bank?
