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because their purchasing power of money is less in real terms they payback less
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∙ 12y ago
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Who is helped by inflation?
Debtors, borrowers of the expense of the lender, pornographers.Government officials, COLA union members, speculators, foreign business members, and borrowers all benefit from inflation.Sourcehttp://shsapeconomics.blogspot.com/2007/11/is-inflation-always-bad-thing.html
During periods of inflation tax rates should?
during periods of inflation tax rates sholkd
What is the effect of a raise in discount rates?
Discount rate = inflation expectation + risk premium for the investment, so when inflation goes up, your discount rate should go up
What is lost during a period of inflation?
Dignity
During inflation what is the best method to value the stock?
during inflation the best method to use inventory valuation that produces that produces that least amount of profit is
Who is helped by inflation?
Debtors, borrowers of the expense of the lender, pornographers.Government officials, COLA union members, speculators, foreign business members, and borrowers all benefit from inflation.Sourcehttp://shsapeconomics.blogspot.com/2007/11/is-inflation-always-bad-thing.html
Does inflation favor lenders or borrowers?
Inflation generally favors those with debt, because the higher prices will drive wages higher and enable a fixed debt to be more quickly paid off.This is also especially apparent where borrowers can borrow against a higher value of property (e.g. homes) and realize income from the inflated assessment.Inflation harms lenders and savers because loans and savings do not directly appreciate from inflation.
Was inflation a big problem during the revolutionary war?
Inflation was a big problem for Americans during the Revolution
What is the ratio of interest on loan from banks?
It depends, among other factors, onthe country and expectations about inflation,the degree of competition between banks,the borrowers' creditworthiness.
During periods of inflation tax rates should?
during periods of inflation tax rates sholkd
What is the effect of a raise in discount rates?
Discount rate = inflation expectation + risk premium for the investment, so when inflation goes up, your discount rate should go up
What advantages and disadvantages do commercial banks gain from maintaining lenders and borrowers?
Lenders (depositors) are an essential source of any bank's main tool i.e the fund. The borrowers provide the profit (interest) which makes the whole system revolve.
What is inflation during colonial times?
british
What is lost during a period of inflation?
Dignity
What is a borrowers slip?
it is a borrowers slip
Is it wise to save during inflation?
it can be wise if the inflation rate doesnt reach the extent to which the money has to be changed
When planning marketing startagies during times of inflation marketers must be aware inflation causes consumers to?
a
