What effect would inflation have on a company's cost of capital
A debtor would favour inflation; the debt would be repaid with money which is worth less than when it was borrowed.
which of the following group is most hurt by unexpected inflation
If the returns on your investment is less than the inflation rate then effectively the value of your money is going down. Lets say you invest Rs. 10000/- which returns you 6% per annum which means at the end of the year it would be worth 10600/ Assuming the national inflation rate is 8% then whatever was worth 10000 rupees last year is worth 10800 this year which means your money has effectively gone down in value by Rs. 200
no
Wpi 2004-2005
Will inflation lead to change in demand? Inflation is defined as the rise of prices in goods and services in a society. Therefore inflation and demand are strongly depended on each other. Supposedly the inflation grows over a period of time, the demands would effect the different levels in society by a equivalent decrease and vice versa.
The effect of capital injection in country like Japan would result into more production. This will also mean that the economy will be boosted and set up for growth.
Lluís Companys i Jover was born on June 21, 1882 and died on October 11, 1940. Lluís Companys i Jover would have been 58 years old at the time of death or 133 years old today.
Disinflation as compared to inflation would normally be good for investments in bonds or gold.
Inflation prone would be having the tendency to have a general and progressive increase in prices.
A debtor would favour inflation; the debt would be repaid with money which is worth less than when it was borrowed.
this would be poor Richards and standard my ducky.lol
no
There would be no difference.
which of the following group is most hurt by unexpected inflation
Undertakers.
Macro Economist because they deal with the bigger issues such as inflation,unemploment as a whole. Microeconomist would deal with how household, and firm make decisions on how they interact in specific market.