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Demand-pull inflation will tend to result in less demand for a product. This tactic is used when too many dollars are going after products with too little supply.
Wiki User
∙ 9y ago
Wiki User
∙ 9y agoThe higher the demand for a product or service, the more the product/service is needed. This causes the prices of labor and/or product to increase, to meet the demand.
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If there is an increase in the money supply that causes money to lose its purchasing power and leads to inflation what happens to prices?
they rise
What may inflation lead to?
Inflation consequently leads to sharp rise in prices which in turn leads to the devaluation of money and prices rise. Also imports decrease and exports increase due to the devaluation of the local currency as compared to dollar and investing in financial institutions also decreases. Source: http://www.activetrader-links.com/
Easy money policy leads to an increase in what?
inflation
What best explains the cost-push inflation?
Increasing wages for workers drive up the cost of production, forcing producers to charge more to meet their costs. ~Rising production costs~
If there an increase in the money supply that causes prices to rise and leads to inflation what happens to money?
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
If there is an increase in the money supply that cause money to lose it purchasing power and leads to inflation what happens to prices?
they rise
If there is an increase in the money supply that causes money to lose its purchasing power and leads to inflation what happens to prices?
they rise
What may inflation lead to?
Inflation consequently leads to sharp rise in prices which in turn leads to the devaluation of money and prices rise. Also imports decrease and exports increase due to the devaluation of the local currency as compared to dollar and investing in financial institutions also decreases. Source: http://www.activetrader-links.com/
Easy money policy leads to an increase in what?
inflation
Which of the following leads to the end of a boom period in the business cycle?
a reduction in consumer demand resulting from inflation
What best explains the cost-push inflation?
Increasing wages for workers drive up the cost of production, forcing producers to charge more to meet their costs. ~Rising production costs~
What if there is an increase in the money supply that causes prices to rise and leads to inflation what happens to money?
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
If there an increase in the money supply that causes prices to rise and leads to inflation what happens to money?
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
If there is an increase in the money supply that causes prices to rise and leads to inflation what happens to the money?
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
If there is an increase in the money supply that causes prices to rise and leads to inflation what happens to money?
If there is a increase in money supply that is causing price to rise money only does one thing. The money that is taking is used for supply.
Why might it be a bad idea to create money to cover budget deficits?
Printing money to cover deficits creates inflation. This raises interest rates and prices which usually leads to more government expenditure and larger deficits.
What leads to the end of a boom period in a business cycle?
A reduction in consumer demand resulting from inflation.
