answersLogoWhite

0

Either with a lack of inflation the next term, or if allowed to build for several years a depression, and finally if you put an idiot in office who exponentially compounds the situation by wasting more money and not allowing the capitalist system to work it's course, a severe depression could last for several years or decades.

User Avatar

Wiki User

14y ago

What else can I help you with?

Continue Learning about Economics

What is an acceptable inflation rate?

Each government will have a set target with which the inflation rate should lie. For example, in NZ the inflation rate target is 1-3%.


Is it true that the occurrence of inflation and high unemployement at the same time is called crowding in?

False, crowding in occurs when decreases in government spending lead to an increase in private spending.Note that we (almost) often have inflation in all economies. Inflation just means that prices rises over time, something which is quite normal. Many countries operates with an inflation target of 2-2,5% per year, and it is only when actual inflation deviates substantially from this target that problem occurs. A high inflation rate (well above the target) together with high unemployment is known as stagflation.


Did the south African reserve bank succeeded in keeping its inflation target within the range?

Has the South African Bank failed in keeping inflation within the range of 3 to 6 percent? Discuss


What is inflation rate targeting?

Central banks such as the Fed prefer that inflation remains stable over the long run. Most central banks practice flexible inflation targeting, to achieve that end. Constant inflation would deliver a zero output gap (meaning that the real level of output is equal to the potential level of output). High inflation is often detrimental to an economy. Businesses and households must divert time and money to hedge against inflation. For example, retail stores must incur the cost of changing thousands of sticker prices on their shelves and in their computers. Severe types of inflation can reduce real output, thereby increasing unemployment. However, when the price level stagnates (meaning little or no inflation), economies are at risk of a deflationary spiral. When this happens, prices and production fall drastically. To balance between these extremes, central banks practice inflation targeting. Currently, the Fed holds a target of around 2% inflation per annum.


Why would a federal reserve board raise interest rates?

A Federal Reserve Board may raise interest rates primarily to combat inflation, as higher rates can help cool off an overheated economy by making borrowing more expensive and saving more attractive. Additionally, increasing rates can strengthen the currency and stabilize financial markets by preventing excessive risk-taking. It can also be a response to strong economic growth to ensure that inflation remains within the target range. Ultimately, the aim is to maintain balance in the economy and promote sustainable growth.

Related Questions

What is an acceptable inflation rate?

Each government will have a set target with which the inflation rate should lie. For example, in NZ the inflation rate target is 1-3%.


Is it true that the occurrence of inflation and high unemployement at the same time is called crowding in?

False, crowding in occurs when decreases in government spending lead to an increase in private spending.Note that we (almost) often have inflation in all economies. Inflation just means that prices rises over time, something which is quite normal. Many countries operates with an inflation target of 2-2,5% per year, and it is only when actual inflation deviates substantially from this target that problem occurs. A high inflation rate (well above the target) together with high unemployment is known as stagflation.


Which CD and DVD drives are there available at Target stores?

Target carries Sony drives, which are more expensive, but easily returned to Target if they're defective.


What if subpoena duces tecum is returned unserved?

Returned unserved means that the subpoena was not served to its intended target. The subject of the subpoena must then be located and served.


What is the inflation target range as set by the South African Revenue Bank?

Since 2000, the South African Revenue Bank has held inflation targeting as its prime monetary policy goal. SARB has an consumer price inflation (CPI) objective of 3-6%.


Did the south African reserve bank succeeded in keeping its inflation target within the range?

Has the South African Bank failed in keeping inflation within the range of 3 to 6 percent? Discuss


What is inflation rate targeting?

Central banks such as the Fed prefer that inflation remains stable over the long run. Most central banks practice flexible inflation targeting, to achieve that end. Constant inflation would deliver a zero output gap (meaning that the real level of output is equal to the potential level of output). High inflation is often detrimental to an economy. Businesses and households must divert time and money to hedge against inflation. For example, retail stores must incur the cost of changing thousands of sticker prices on their shelves and in their computers. Severe types of inflation can reduce real output, thereby increasing unemployment. However, when the price level stagnates (meaning little or no inflation), economies are at risk of a deflationary spiral. When this happens, prices and production fall drastically. To balance between these extremes, central banks practice inflation targeting. Currently, the Fed holds a target of around 2% inflation per annum.


What is inflation targeting?

Central banks such as the Fed prefer that inflation remains stable over the long run. Most central banks practice flexible inflation targeting, to achieve that end. Constant inflation would deliver a zero output gap (meaning that the real level of output is equal to the potential level of output). High inflation is often detrimental to an economy. Businesses and households must divert time and money to hedge against inflation. For example, retail stores must incur the cost of changing thousands of sticker prices on their shelves and in their computers. Severe types of inflation can reduce real output, thereby increasing unemployment. However, when the price level stagnates (meaning little or no inflation), economies are at risk of a deflationary spiral. When this happens, prices and production fall drastically. To balance between these extremes, central banks practice inflation targeting. Currently, the Fed holds a target of around 2% inflation per annum.


Why would a federal reserve board raise interest rates?

A Federal Reserve Board may raise interest rates primarily to combat inflation, as higher rates can help cool off an overheated economy by making borrowing more expensive and saving more attractive. Additionally, increasing rates can strengthen the currency and stabilize financial markets by preventing excessive risk-taking. It can also be a response to strong economic growth to ensure that inflation remains within the target range. Ultimately, the aim is to maintain balance in the economy and promote sustainable growth.


How do wound rolls work in Warhammer 40k?

In Warhammer 40k, wound rolls determine if an attack successfully wounds a target. Players roll a dice and compare the result to the attacker's Strength and the target's Toughness. If the roll meets or exceeds the required number, the attack successfully wounds the target.


Does Target return the cost of shipping if you return something you bought online to a Target store?

When I worked at Target during college, we did not refund cost of shipping when returned into store. This was several years ago though so policy could have potentially changed, Target also has regionalized management so policy may vary from store to store.


A high PRF will?

Make the returned echoes easier to distinguish from Noise, Make target tracking easier with conical scanning, and it have no effect of the range resolution