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inflation

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14y ago

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What is it called when the value of currency goes down called?

it is called deflation


What is the result when you finance a war by printing a great deal of money?

The value of the dollar goes down.


What makes the dollar lose value on the world market?

Sometimes if one country prints more money and there is a lot of money the value goes down. If money was rare it would be worth a lot.


What does too much money in the economy lead to?

A high level of capital in the economy exerts and inflationary pressure. With this, prices can rise and the value of the money goes down.


How is too much money chasing too few goods is a common way use to describe what economic concept?

In economic terms, it is scarcity.This is what drives inflation. The more money in the economy, the less it is worth. Consequently, as the value of the dollar goes down, the price of everything goes up. This is what is called an inverse relationship.


What is asset demand for money?

Asset demand for money is dependent on interest rates. The money slope goes down if interest rate goes down. In contrast, money slope goes up if interest rate goes up.


What happens when too much money is in circulation?

Inflation happens. When the supply of money goes up. The value of money goes down. And prices go up. Inflation is not the same as rising prices. Inflation causes rising prices.


What happens when the value of the us dollar goes down?

if the value of dollar goes down, there are big effect to the ofw, for example the remittaces of the ofw when they sent the dollar here in Philippines the value of the dollar is depreciated.


How much money did Igby Goes Down gross worldwide?

Igby Goes Down grossed $4,777,465 worldwide.


How would the changing value of the German Mark affect the German people?

When the value of a nations money changes value it can make it worth or worth less. This means it would take more money to buy something when the value goes down. This is called inflation and people have to work more to make enough money to live. The value of a currency is also measured against other currencies and imports/exports will suffer. This in the long run could affect production and the closing of factories thus people loose jobs.


How would changing the value of the German Mark affect the German people?

When the value of a nations money changes value it can make it worth or worth less. This means it would take more money to buy something when the value goes down. This is called inflation and people have to work more to make enough money to live. The value of a currency is also measured against other currencies and imports/exports will suffer. This in the long run could affect production and the closing of factories thus people loose jobs.


When there is no gold what does the government back its currency with?

Promises and happy thoughts. The value is pegged to the GDP of the country that makes the promise of value so when that country's GDP goes down and its gov't prints more money, the existing value drops.

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