answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: What inflation rate does not cause problems for the economy?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is disinflation?

Declining down of inflation rate in an economy.


What is Zero inflation and Mild inflation?

Zero inflation is where the economy reach a state of 0% inflation rate. This is not really good in the sense that it shows the economy is stagnant/not growing. This may turn away the investors. Mild inflation is basically low rate of inflation around 2% to 3%. Mild inflation shows that an economy is stable and indicates economic growth.


What yearly inflation rate do monetarists argue ensures an adequate money supply for a healthy economy?

An inflation rate of from 1-3% should ensure an adequate money supply for a healthy economy.


The main cause of inflation is?

The rate of production of goods


What does disinflated mean?

dis·in·fla·tion  disinflation pronunciation" /> /ˌdɪsɪnˈfleɪʃən/ Show Spelled[dis-in-fley-shuhn] noun Economics .a period or process of slowing the rate of inflation.A drop in inflation rate , i.e . a reduction in the rate at which prices rise-(of an economy) to slow down the rate of inflation.verb (used with object)2.to slow down the rate of inflation in (an economy).Definition: Disinflation occurs when the inflation rate is declining over time.Deflation occurs when the inflation rate becomes negative.Terms related to Disinflation:DeflationInflationRecession***-Inflation is one of the most important variables in economics, as its impact is felt on everything from mortgage rates to union-management contract negotiations.The Economics Glossary defines Inflation as: Inflation is an increase in the price of a basket of goods and services that is representative of the economy as a whole.


What is the difference between price level and the rate of inflation in an economy?

The price level is a measure of the average price in an economy and is measured at a point in time.. The rate of inflation is the rate of change of the price level over time. Strictly speaking, economists define inflation as a continued increase in the price level as opposed to a one time price level adjustment.


How do exchange rate affect businesses?

The local economy will be higher raising on inflation and the value of currency of the price will be in intrest rate as decreasing.


Why are high inflation rate bad for the economy?

Because high inflation cause costs to rise extremly fast causing most of the population to lose out as less can be bought with the same amount of money. Read on the web about Zimbabwe and the effects it has had on the society as a whole


What are the problems that people have today?

Today people have many problems like traffic, pollution, corruption, inflation rate.


Q: What is inflation?

Inflation is the rate of increase in prices over a given period of time.


What is the inflation rate in Texas?

current inflation rate in harris county


Who causes inflation (government or investors)?

Inflation is a measure of the rate of rising prices of goods and services in an economy. If inflation is occurring, leading to higher prices for basic necessities such as food, it can have a negative impact on society.