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High inflation rates would make it difficult for consumers to buy essential needs. If wages do not increase at the same rate, it would be very difficult for the average person to survive.
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Economic environment in buiness?
The totality of economic factors, such as employment, income, inflation, interest rates, productivity, and wealth, that influence the buying behavior of consumers and institutions.Hailegiorgis Biramo Allaro11 October 2011
What are the interest rates for a student loan?
The interest rates for a student loan are typically fixed at the annual inflation rate. This is true of that of the UK. Higher rates are typical in other countries.
Inflation rates?
inflation
Can an insurance company charge inflation rates?
Insurance company have premium rates, Not inflation rates.
If inflation is high how does that affect interest rates?
Intuition suggests that business activity increases the demand for money, which drives up the "price" (interest rates) of money. It also suggests that lenders will charge more interest in order to cover the losses they experience from inflation (see the Fisher Equation) Along with that, we also experience an increase in inflation. This may not be your question, though, so keep reading. During economic downturns, the Fed lowers interest rates. This causes inflation to rise, because it puts more money in the hands of consumers. When inflation gets too high, the Fed wants to raise interest rates. The previous two paragraphs refer to different "interest rates". The first is about banks lending to consumers, the second is about Fed policy. Please be wary of the difference.
If expected inflation increases interest rates are likely to increase?
Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates
Do interest rates rise when inflation declines?
Interest rates are simply the price of money. When inflation declines, interest rates typically decline also.
During periods of inflation tax rates should?
during periods of inflation tax rates sholkd
How do interest rates and inflation affect real estate in south Africa?
explain how do intrest rates and inflation affect the real estate
What are economics concern with?
The economy - increase and stabilization of growth -keeping inflation under control -adjusting interest rates to enable consumers to borrow and spend A+LS: how well resources are used by a society
Impact of recession?
high interest rates such as the repo rates and high inflation rate
When inflation increases interest rates go .?
duck it
