False. If inflation occurs, prices rise. Since the CPI is an indicator of price changes, the CPI will rise correspondingly.
It is used for measuring inflation. It will track a basket of goods over a period of time measuring the cost along the way. The rise and fall of inflation is based on the consumer price index.
rise
Bond prices fall when inflation increases because higher inflation erodes the purchasing power of the fixed interest payments that bonds provide. Investors demand higher yields on bonds to compensate for the loss in purchasing power, causing bond prices to decrease.
It is a simple reason. Chronic inflation causes price rise across the board, all commodities affected. From the housewife buying vegetables to the jewelers, businessmen and everyone else using fuel. What also happens during chronic inflation situations is the government raises the interest rates. So while prices of all goods have gotten expensive so had the cost of borrowing. A difficult time for everyone. Btw the way, the government raises interest rates to curb the cash flow fueling the high prices. So if the cash flow decreased then prices will fall.
inflation
false
It is used for measuring inflation. It will track a basket of goods over a period of time measuring the cost along the way. The rise and fall of inflation is based on the consumer price index.
It is used for measuring inflation. It will track a basket of goods over a period of time measuring the cost along the way. The rise and fall of inflation is based on the consumer price index.
It does not necessarily fall.
No. A fall in the rate of inflation does not mean prices fall. It simply means they go up a little slower. Your money becomes worthless at a little slower speed.
rise
A rise in unemployment will lead to a fall in inflation...this is best explained by the philips curve
nonlinear graph.
nonlinear graph
A non-linear graph.
There is no specific name. It could be a non-linear graph, or a scatter graph.
Maths