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Why are high levels of inflation considered a negative development for an economy?
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What is negative inflation?
Negative inflation means that the economy is in a deflationary period. That is, there is less money (supply of money) chasing the same amount of goods and services, leading to the increase in the value of the money.
Is inflation harmful?
Too much inflation will ruin the economy but small levels of inflation will spur growth. Inflation is very harmful to any economy because it can ruin the economy's development and growth and this is not suppose to be. Inflation is also very harmful to any economy because the people living in that economy might not survive the situation and this is when you see that an economy is affected and if nothing is done to it, it can cause an economy to collapse.
What are the implications of rising inflation to an economy?
No economic growth or development, foreign exchange reserve and impact on the monetary policy.
What are the links between inflation and the economy?
on increasing inflation economy growth decreases
What are the Effect of mono economy?
Negative effects of mono economy to the growth and development of Nigeria
What is negative inflation and how does it affect the Indian economy?
negative inflation mean there is decrease in thevalue of good but at slower rate.it is a situation where there is no demand in the economy as there is no supply of money in marketits not good for economy as the supplier donot find demand for their good in the market as a result they have to shut down their enterprises..and the economy growth start declining
What is negative inflation?
Negative inflation means that the economy is in a deflationary period. That is, there is less money (supply of money) chasing the same amount of goods and services, leading to the increase in the value of the money.
Is inflation harmful?
Too much inflation will ruin the economy but small levels of inflation will spur growth. Inflation is very harmful to any economy because it can ruin the economy's development and growth and this is not suppose to be. Inflation is also very harmful to any economy because the people living in that economy might not survive the situation and this is when you see that an economy is affected and if nothing is done to it, it can cause an economy to collapse.
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.
What are the implications of rising inflation to an economy?
No economic growth or development, foreign exchange reserve and impact on the monetary policy.
What are the links between inflation and the economy?
on increasing inflation economy growth decreases
What are the Effect of mono economy?
Negative effects of mono economy to the growth and development of Nigeria
What is macroeconomics's?
Macroeconomic deals with the functioning of the economy as the whole. It is concerned with economy wide issues such as unemployment, inflation, and Economics growth/development; it is the study of economics from a broad perspective of the resources and factors of production in an economy.
Impacts of energy crisis?
Energy crisis have a negative impact to global economy, some of which are; lack of sufficient food, fall in GDP, and inflation.
How can deficit financing policy can cause inflation in Pakistan?
Deficit Financing is a tool with Government to finance development and non development expenditures by printing currency notes. Due to the Government spending the extra currency notes come in circulation in economy. Since total amount of goods and services in the economy remain the same rather people get addition money to buy the goods and services. Due to the effect of demand pull inflation the prices of goods and services in the economy rises and is main source of inflation.
What An example of microeconomics and macroeconomics?
Micro: behavior of households and firms. Macro: economy wide issues such as unemployment, inflation, econ. growth/development.
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.
