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What is lost during a period of inflation?
Dignity
What may inflation be defined as?
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.(In practice, the term monetary inflation is used to specifically refer to an increase in the money supply.)
During which of these time periods was there a period of inflation?
1982 to 1984
What best describes a period of inflation?
Characteristics of inflation are: Inflation involves a process of the persistent rise in prices. It involves rising trend in price level. Inflation is a state of disequilibrium. Inflation is scarcity oriented. Inflation is dynamic in nature. Inflationary price rise is persistent and irreversible. Inflation is caused by excess demand in relation to supply of all types of goods and services. Inflation is a purely monetary phenomenon. Inflation is a post full employment phenomenon. Inflation is a long-term process
During a period of inflation the graph of the cpi will fall?
False. If inflation occurs, prices rise. Since the CPI is an indicator of price changes, the CPI will rise correspondingly.
What is monetary gain?
The gain in purchasing power that is derived from holding monetary assets and/or monetary liabilities during a period of changing prices. An increase in prices tends to devalue monetary assets and monetary liabilities. Thus, if a firm's monetary liabilities exceeded its monetary assets, inflation would tend to produce monetary gains.
What is lost during a period of inflation?
Dignity
What may inflation be defined as?
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.(In practice, the term monetary inflation is used to specifically refer to an increase in the money supply.)
Who was Governor of the bank of Canada in 1974?
The Governor of the Bank of Canada in 1974 was Gerald Bouey. He served in this role from 1973 to 1979, overseeing the bank during a period marked by economic challenges, including inflation and changes in monetary policy. Bouey played a significant role in shaping Canada's monetary policy during his tenure.
During which of these time periods was there a period of inflation?
1982 to 1984
During inflation period tax rates should be increased or decreased?
increased
What best describes a period of inflation?
Characteristics of inflation are: Inflation involves a process of the persistent rise in prices. It involves rising trend in price level. Inflation is a state of disequilibrium. Inflation is scarcity oriented. Inflation is dynamic in nature. Inflationary price rise is persistent and irreversible. Inflation is caused by excess demand in relation to supply of all types of goods and services. Inflation is a purely monetary phenomenon. Inflation is a post full employment phenomenon. Inflation is a long-term process
A comprehensive measure of consumer discomfort during a period of rising inflation and high unemployment is?
misery index
During a period of inflation the graph of the cpi will fall?
False. If inflation occurs, prices rise. Since the CPI is an indicator of price changes, the CPI will rise correspondingly.
Why there is need for public debt?
Need for public debt: During period of inflation and deflation it is a sound fiscal weapon.
How does inflation affect investment?
The inflation affects the investment indirectly when read with the return. Example if an investment provides a return of 6%, and the inflation during the same period is 5%, the investment in real terms increases only by 1% and not by 6%, as inflation eats away returns to the tune of 5%.
What factor did NOT contribute to the recession in the US in the early 1990s?
One factor that did not contribute to the recession in the US in the early 1990s was the inflation rate, which was relatively low during this period. Instead, the recession was primarily driven by the aftermath of the Gulf War, a decline in defense spending, and a tightening of monetary policy to combat earlier inflation. Additionally, the savings and loan crisis also played a significant role in destabilizing the economy.
