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How does the concept of technology being deflationary impact the economy and market trends?
The concept of technology being deflationary means that as technology advances, the cost of goods and services decreases over time. This can impact the economy and market trends by leading to lower prices for consumers, increased efficiency in production, and potentially lower profit margins for businesses. It can also create challenges for industries that rely on high prices to maintain profitability. Overall, the deflationary impact of technology can drive innovation and competition, but may also require businesses to adapt to changing market conditions.
How has the rising gas prices affected your personality as a consumer?
Well as gas prices are no longer rising but actually rapidly dropping it has made me extremly wary of the state of the economy. What most people do not realize is when gas prices are high, the economy is doing very well. As gas prices are dropping... it is simply reflecting the tragic state our economy is actually in. It makes me want to travel less, buy less and consume less. BUT THATS JUST ME!
if the reserve bank wishes to implement a deflationary open market policy?
If the Reserve Bank wishes to implement a deflationary open market policy, it would sell government securities in the open market. This action reduces the money supply, as buyers pay for these securities, leading to higher interest rates and decreased borrowing and spending in the economy. The goal is to curb inflation and stabilize prices by reducing excess liquidity. Ultimately, this policy aims to foster a more balanced economic environment.
What is the positive effects on your environment?
All of the economy could just be etter & gas prices go down.
Falling demand outbreak?
Falling demand triggers a fall in prices, and leads to a drop in production, and eventually a deflationary cycle that spirals out of control.
Index numbers serve as economic barometers?
Index numbers are measures of relative changes and can show only a general tendency. In this sense they are techniques for estimating the general trends in prices, production and other economic variables. They are used to feel the pulse of the economy and they indicate the inflationary and deflationary tendencies.
What of these occurs during the decline of prices due to insufficient money supply?
During the decline of prices due to insufficient money supply, a deflationary spiral can occur. This leads to decreased consumer spending, as people anticipate lower prices in the future and postpone purchases. Businesses, facing reduced demand, may cut production and lay off workers, resulting in higher unemployment. Ultimately, this cycle can further contract the economy and exacerbate the decline in prices.
Why is the price of gas dropping so dramatically?
The gas is dropping because the economy is so bad. People are losing money because of the bad economy so many don't want to spend a lot of money on gas. The gas companies were losing buisness because people weren't using cars. Therefore the gas companies lowered their prices to bring back customers.
Why are gold and silver prices dropping?
Gold and silver prices are dropping due to factors such as a strengthening US dollar, rising bond yields, and reduced demand for safe-haven assets.
Who determines prices in a market economy?
in a market economy.. the prices are decided by demand and supply....or compention
What occurs when there's less money in circulation there are plenty of goods but no demand so prices drop?
This is formally known as a deflationary depression. The Great Depression of 1929 was of that type.
What will occur if reserve bank wished to impliment a deflationary open-market policy?
If a reserve bank wishes to implement a deflationary open-market policy, it will sell government securities in the open market. This action reduces the amount of money in circulation, leading to higher interest rates and discouraging borrowing and spending by consumers and businesses. The overall effect aims to curb inflation by decreasing demand in the economy, thereby stabilizing prices. However, it may also risk slowing economic growth if not managed carefully.
