0
mild inflation is better because in the first place it motivates producers in producing more, since price increase is an incentive to them. secondly , excess demand will be partially regulated in mild inflation coz price increase reduces, hence, prospects of higher inflation minimised.
zero inflation on the other hand demotivates producers coz there are no changes in price levels, this leads to low out put and hence, loss of GDP and consequently unemployment may crop in.
by griffin masoambeta miracle year 2 bunda college of agriculture, Lilongwe university of agriculture and natural resources(LUANAR)
What else can I help you with?
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.
What happens if rate of inflation is zero?
A 0% inflation rate means that money is not losing or gaining any buying power.
Why inflation increases when real GDP is above the potential GDP?
why inflation increases when real GDP is above the potential GDP
When the inflation rate is zero is the present value of one dollar is identical to the future value of one dollar?
Yes.
Is zero inflation and consistent rise in food prices?
Because peoples not interested in Agriculture much so automatically it effects
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.
How the unemployed are affected by inflation?
Because people who are unemployed have no constant source of income, and the higher the costs of things they buy go up, and the less money they receive, the worse-off they are. Question irrelevant, since there is currently zero inflation. Food and housing and general living cost are NOT rising. The unemployed have problems, but inflation is not one.
What happens if rate of inflation is zero?
A 0% inflation rate means that money is not losing or gaining any buying power.
Is zero coupon bond more sensitive to change in interest rate than fixed coupon bond?
The zero coupon bond is more sensitive to change in rate (inflation) because the market value is not based on a fixed coupon.
Why inflation increases when real GDP is above the potential GDP?
why inflation increases when real GDP is above the potential GDP
Is near zero level inflation is bad?
Though a Zero inflation is practically very difficult to achieve, very low levels of inflation are actually bad for the economy. Inflation determines the increase in prices of goods and services in a country's economy year on year. A very low or zero inflation means a very low level of growth in prices for goods and services which in turn implies that the economic growth in the country is also very poor. In a growing or flourishing economy the prices of goods and services increase in a steady and consistent manner year on year. This means the country's economy is growing steadily. Inflation rates of around 5-6% are considered ideal for countries. A very low inflation is bad for the economy and at the same time a double digit inflation is also very bad for the economy.
When the real interest rate is less than zero then?
When the real interest rate is less than zero, it indicates that inflation is eroding the purchasing power of money more rapidly than the nominal interest earned on savings or investments. This scenario discourages savings and encourages spending or investment in riskier assets, as holding cash or low-yielding accounts results in a loss of value over time. Consequently, it can stimulate economic activity in the short term, but may also lead to concerns about inflation and financial instability in the long run.
When the inflation rate is zero is the present value of one dollar is identical to the future value of one dollar?
Yes.
What are an integer less than zero?
Oh honey, integers less than zero are just the negative numbers. You know, like -1, -2, -3, and so on. So if you're feeling a little down, just think of those negative integers and remember, it can always be worse!
What is 12 rounded to the nearest hundred?
0
Is zero less than or equal to zero?
Zero is equal to zero
Is zero inflation and consistent rise in food prices?
Because peoples not interested in Agriculture much so automatically it effects
