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Why is a constant inflation rate less harmful to an economy than a rate that fluctuates a lot?
Wiki User
∙ 15y ago
Because it provides stability and it is easier to predict. This makes it easier for business to plan (especially banks) what they will do in the future. Uncertainty is sometimes just as bad as a shrinking economy.
Wiki User
∙ 15y ago
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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.
Why are fluctuations in the economy harmful?
Inflation can be harmful if individuals' incomes do not increase at the same rate as rising prices, because then the consumers buy less. Economic contraction is harmful because companies begin to lay off workers, and the economy slows down.
Is this statement Inflation is more harmful to the economy than unemployment a positive statement?
equality is more important than efficiency. Is that a positive or normative statement?
Inflation is most harmful to?
Inflation is the most harmful to those that cannot afford it. Since it can cause people to lose money, it can be devastating to individuals and businesses that already have little money.
Advantages and disadvantages of a market economy?
Advantages: competition sells products at the lowest price and the best qaulity good Disadvantages: No government involved means some products could be harmful to people
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.
Why are fluctuations in the economy harmful?
Inflation can be harmful if individuals' incomes do not increase at the same rate as rising prices, because then the consumers buy less. Economic contraction is harmful because companies begin to lay off workers, and the economy slows down.
Is this statement Inflation is more harmful to the economy than unemployment a positive statement?
equality is more important than efficiency. Is that a positive or normative statement?
Why inflation at very high level and very low level is harmful for economy?
Inflation at a very low level will be harmful for the economy because when the low infaltion will prevail in the economy purcahsing power of the people will get high and they will demand for more goods increase in demand will leads to increase in production in the short run it will be profitable but in the long run it will be harmful for the economy because in the lon run factors of production will be repletion and will lead to lower production and leads to economic crised. in the long run factors of production decides the price of the products not the demand of the products.
What can be harmful for the economy?
what can be harmful to the economy is when the non renewable resources are finished
Inflation is most harmful to?
Inflation is the most harmful to those that cannot afford it. Since it can cause people to lose money, it can be devastating to individuals and businesses that already have little money.
What are the benefits of homeostasis?
homeostasis maintains a constant or nearly constant body environment to save it from the harmful effects of fluctuations in the external enviroment.
Which insect harmful to man both healthwise and economy wise?
1
Why is fuel economy important?
For the vehicle owner it saves money. For the environment, it means less harmful emissions.
How does your atmosphere keeps the earth at a constant temperature and protects us from harmful rays from the sun?
The atmosphere keeps earth at constant temperature. It is due to ozone protection which also avoids global warming.
How harmful is animal waste to the economy to people and to the environment?
It is not harmful at all! Animal waste is also known as fertilizer. Milorganite is made from human waste for example. Farms will take the feces and spread this material in fields to help encourage plant growth. This reduces overall food costs and helps our environment and the economy, so the short answer is that it helps make the economy and environment a better place.
Is the constant smell of dog urine and feces harmful to humans?
yes, especaily if you dont get off your lazy butt and clean it up
