Inflation is the state in which
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Consider a country that has experienced hyperinflation. In general, countries with higher inflation rates tend to have less stability in the inflation rate, making it difficult to forecast. If this country wants to reduce its inflation rate, state which of the following monetary regimes is least likely to succeed: exchange rate target, money supply target, nominal interest rate policy. Which approach is most likely to succeed?Explain.
If the inflation rate is increasing and unemployment is decreasing, in what state is the economy likely to be in?