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SEU Inflation Questions

SEU Inflation Questions

Question Description

I’m working on a macro economics question and need an explanation and answer to help me learn.

 Clear and detailed answers to all sub-questions within the main question.

What is the inflation tax, and how might it explain the creation of inflation by a central bank? 

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? 

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