answersLogoWhite

0

1. International Crude Price 2. Higher Agricultural commodity Price 3. much liquidity in Market

User Avatar

Wiki User

16y ago

What else can I help you with?

Related Questions

Define inflationary economy under US GAAP?

define an inflationary economy


What is the current situation?

The economy


Is the United States economy in an inflationary or recessionary gap?

Recessionary.


An inflationary gap exists when AD and SRAS do what?

It exists when the AD exceeds the productive capacity of an economy (LRAS). The amount is the difference between the current level of income and the income at full capacity, if the economy is producing over full employment.


What is current economic situation in Ghana?

They have no economy they all live in mud huts


What is Philippines rank in world economy?

the Philippines is 175 years late than the US economy


What is the effect of the current situation in Zimbabwe on Zimbaweans living there?

Zimbabwe's economy is suffering due to an ineffective government.


What actions should the government take if the economy is in an inflationary period?

During an inflationary period, the government should consider taking actions such as increasing interest rates, reducing government spending, and implementing policies to control the money supply. These measures can help to curb inflation and stabilize the economy.


What does too much money in the economy lead to?

A high level of capital in the economy exerts and inflationary pressure. With this, prices can rise and the value of the money goes down.


What would increase interest rates in the economy?

increase in the cetnral bank lending rates to the commercial banks,increase in the borrowing of the government from the local economy(domestic borrwing),high inflationary pressuressustained in the economy,efforts by the central bank to stabilize the exchnge rates of a country in a situation where the countries currency has all of a sudden been depreciated due to foregn trade shocks


During an inflationary period what is one way the U.S. government might use its fiscal policy to slow down the economy?

During an inflationary period, the U.S. government might use contractionary fiscal policy to slow down the economy by reducing government spending or increasing taxes. By cutting spending on public programs or raising taxes, disposable income for consumers decreases, leading to lower demand for goods and services. This reduction in demand can help alleviate inflationary pressures, stabilizing prices in the economy.


What monetary policy should be implemented to correct an inflationary economy?

a sale of bonds to decrease the money supply, increasing interest rates, these are recessionary measures used to slow down the economy.