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What else can I help you with?
When your country is experiencing inflation the government may try to control it by?
Yes government tries to control the inflation by increasing the supply into the market, this balances the demand supply curve
When the government attempts to cover large deficits by creating more money. what is the probable result called?
Inflation. Increasing the money supply dilutes the value of the money already in the economy. This dilution has the effect of driving up prices, thus inflation.
When economy is moving in recession process demand is increasing supply is decreasing prices are increasing than what is that type of inflation?
I think you're referring to a so called Running Inflation. Check the link for more information.
Why did inflation start?
Inflation typically begins due to a combination of factors, including increased demand for goods and services that outpaces supply, rising production costs, or expansive monetary policies that increase the money supply. External shocks, such as supply chain disruptions or geopolitical events, can also contribute to inflation by limiting supply or increasing costs. Additionally, consumer expectations and wage growth can further drive inflation if businesses raise prices in anticipation of higher demand or increased labor costs.
What creates inflation?
Milton Freedman probably is the best person to look up for this answer, and he has written much on this topic. Basically it is a monetary phenomina. Increases and decreases in the money supply create inflation or deflation. Think of the root form of this word, inflate, such as a balloon or a tire. Increasing the quantity of a price does not make sense, however rising prices due to increasing the quantity of money in the money supply does.
When your country is experiencing inflation the government may try to control it by?
Yes government tries to control the inflation by increasing the supply into the market, this balances the demand supply curve
When the government attempts to cover large deficits by creating more money. what is the probable result called?
Inflation. Increasing the money supply dilutes the value of the money already in the economy. This dilution has the effect of driving up prices, thus inflation.
When economy is moving in recession process demand is increasing supply is decreasing prices are increasing than what is that type of inflation?
I think you're referring to a so called Running Inflation. Check the link for more information.
Why did inflation start?
Inflation typically begins due to a combination of factors, including increased demand for goods and services that outpaces supply, rising production costs, or expansive monetary policies that increase the money supply. External shocks, such as supply chain disruptions or geopolitical events, can also contribute to inflation by limiting supply or increasing costs. Additionally, consumer expectations and wage growth can further drive inflation if businesses raise prices in anticipation of higher demand or increased labor costs.
What creates inflation?
Milton Freedman probably is the best person to look up for this answer, and he has written much on this topic. Basically it is a monetary phenomina. Increases and decreases in the money supply create inflation or deflation. Think of the root form of this word, inflate, such as a balloon or a tire. Increasing the quantity of a price does not make sense, however rising prices due to increasing the quantity of money in the money supply does.
The depression of the 1870's led to increasing demands for?
Inflation of the money supply by issuing more paper or silver currency
How would increasing employment would affect inflation?
Increasing employment typically leads to higher consumer spending, as more people have jobs and disposable income. This heightened demand for goods and services can put upward pressure on prices, contributing to inflation. Additionally, as the labor market tightens, wages may rise, further fueling inflationary pressures. However, the extent of this effect can vary depending on other economic factors, such as productivity and supply chain constraints.
What is quantitive easing?
Increasing the money supply thus eventually creating inflation - or in extreme situations, hyperinflation. It is a tool used by central banks to offset deflation and recession.
What are the ways of controlling inflation?
Inflation can be controlled through various methods, primarily involving monetary and fiscal policies. Central banks may raise interest rates to reduce money supply and curb spending, while governments can implement fiscal measures like reducing public spending or increasing taxes. Additionally, controlling inflation expectations through clear communication and policies can help stabilize prices. Supply-side strategies, such as improving productivity and increasing the availability of goods, can also mitigate inflationary pressures.
How does inflation effect cost of capital?
Inflation is too many dollars chasing too few goods. It happens when the money supply is variable and the cost of borrowing from commercial lenders (1. federal reserve) is too low.
If the government increases the supply of money circulating in the economy How might this impact individuals?
An increase in the money supply can result in a greater demand by increasing the number of potential buyers. This can cause inflation, which means generally higher prices for goods and services.
What do monetarians believe regarding inflation?
the main cause of inflation is the growth of money supply
