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Can inflation lead to lower interest rates and higher stock prices?
Wiki User
∙ 11y ago
False
Wiki User
∙ 11y ago
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What is a negative inflation rate?
when prices are not getting higher but lower.
What is the solution for controlling inflation in Pakistan?
Solutions for inflation are, A. Technological advancement as it will decrease the per unit cost in the country and will support the industries to meet the excess demand pull and cost push problems. That will reduce the inflation in Pakistan. B. If it is demand pull inflation so Government should charge higher amount of taxes and facilitate more with the help of subsidies to firms by which they could meet up the problems of excessive demand and cost problem. That will also surely help us to solve the Inflation problem in Pakistan. By: Ghamz-e-Ali falconsial@yahoo.com
How does inflation affect profit?
Well the same way as it affects anyone else. If the business don't raise the prizes on whatever product they sell alongside the inflation it will end up paying higher and higher prizes on materials and services from other companies. Meaning lower and lower revenue.
Why do balloons deflate in cold weather?
Because the pressure of a gas is dependent on the temperature. The same amount of gas - as what you have inside your balloon - will have a higher pressure when it's warm, and a lower pressure when it's cold. And higher pressure = more inflation. Lower pressure = less inflation.
Are interest rates on long term bonds usually lower or higher than interest rates on short term bonds?
Higher
What is a negative inflation rate?
when prices are not getting higher but lower.
What does a lower interest rate mean for savers?
It means that they are getting less money for deferring expenditure and saving instead. However, it is not the low nominal interest rates which matter but what the "real" interest rates are. This is the difference between the nominal interest rate and the rate of inflation. An interest rate of 2% when inflation is 0% is good news for savers but an inflation rate even as high as 10% is bad news if inflation is higher than 10%.
What is better a higher or a lower percentage?
If you are receiving interest on an assett, a higher interest is better. If you are paying interest on a debit, a lower interest is better.
How would low interest rates affect airlines?
Low interest rates positively affect airline industries because they lead to the investment of new technology and capital. This will increase the rate of return and increase the value of the infrastructure and services at lower costs, which will induce better quality and higher demand, which will financially benefit the airline industries with lower rates of inflation. High interest rates will actually increase inflation.
What is the solution for controlling inflation in Pakistan?
Solutions for inflation are, A. Technological advancement as it will decrease the per unit cost in the country and will support the industries to meet the excess demand pull and cost push problems. That will reduce the inflation in Pakistan. B. If it is demand pull inflation so Government should charge higher amount of taxes and facilitate more with the help of subsidies to firms by which they could meet up the problems of excessive demand and cost problem. That will also surely help us to solve the Inflation problem in Pakistan. By: Ghamz-e-Ali falconsial@yahoo.com
How does inflation affect profit?
Well the same way as it affects anyone else. If the business don't raise the prizes on whatever product they sell alongside the inflation it will end up paying higher and higher prizes on materials and services from other companies. Meaning lower and lower revenue.
Why do balloons deflate in cold weather?
Because the pressure of a gas is dependent on the temperature. The same amount of gas - as what you have inside your balloon - will have a higher pressure when it's warm, and a lower pressure when it's cold. And higher pressure = more inflation. Lower pressure = less inflation.
Are interest rates on long term bonds usually lower or higher than interest rates on short term bonds?
Higher
How can you escape your high interest contract?
try to get a lower interest loan and pay off the higher interest contract.
Did gas prices go higher or lower during the last year?
the gas prices went higher some places are almost $4.00.....
What was one result of the boom on farm production in the 1870?
Crop prices went down because of the boom in farm production in the 1870s.
Does quality means higher prices?
some times not all the time somtimes it meens lower prices
