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Decrease their spending.

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11y ago

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How has inflation affected the lives of the unemployed people and people collecting social grant?

When inflation goes up and now your rent has increased and so has everything that you


What goes up when i goes down and down when it's up?

inflation


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.


Why production is the answer to inflation?

Due to inflation the money value goes up ,people have more demand but they don't have supply so as it leads to high price of commodity, its the picture of inflation. So avoid this the better way to produce more to set a link between demand and supply.


What are the disadvantages of Inflation?

Inflation is the decreased value of money. if inflation goes up it means that the prices of goods also go up. this may lead to workers demanding higher wages and result in less profit for the business. also means people will not have the the same amount of money to spend and this could lead to a decrease in sales.(less profit)


Do suppliers tend to produce less or more when the price goes up?

they tend to produce less because there are less demands for that product


Should gold price go up or down?

Increasing gold prices can lead to inflation. Falling gold prices tend to improve investment.


What happens if inflation rises by just 1 percent?

The dollar in your pocket is worth .99 of a dollar. also nominal interest=real interest+inflation so nominal interest goes up by 1%


What is inflation and what can the government do about it?

Inflation is both good and bad for a couple of reasons. Inflation means the economy is growing strong and prices are going up. Too much inflation has a bad effect on people who are struggling to have their paychecks meet the growing prices


How can the price of raw materials affect inflation?

As prices of raw materials goes up, prices would go up, causing the currency to buy less.


Why has the prices gone up science 1930?

inflation. the government has been coining more money so people can spend more. when people can spend more the sellers can raise prices. this goes along with everything. everything will only cost more


What is the effect of a raise in discount rates?

Discount rate = inflation expectation + risk premium for the investment, so when inflation goes up, your discount rate should go up

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