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Inflation

A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.

1,474 Questions

Does the purchasing power of money decrease with inflation?

Inflation destroys the purchasing power of a paper fiat currency such as the dollar. In practical terms this means that when inflation is high the same number of dollars today will buy a smaller amount of goods or services tomorrow.

Decrease. Inflation is when more dollar bills are printed. When you have more of something, the value always decreases per each of the something.

How inflation harms taxpayer?

Inflation harms the tax payer, because it makes the value of money worth less. If it takes $20.00 to buy a loaf of bread versus $2.00, then it will be more difficult to buy bread and have money to pay taxes.

How did inflation lead to the opening of the roman empire invading people?

It was a factor which debased the currency and economy, however the over-riding factor was the mass influx of peoples from Eurasia which overwhelmed the Roman ability to resist.

What is the value of a 1945 Half Dollar?

Coins of this series (Walking Liberty) dated from 1940 to 1947 regardless of mintmarks are all very common and have the same retail values of $14.00 in average condition.

What is the value of an 1833 Morgan dollar?

The U.S. did not make dollar coins for circulation between 1804 and 1835 inclusive.

You'll need to provide more details - design, inscriptions, etc. - to help better identify your coin. Bills were issued by banks so you'd need to post a new question with more details.

Price of a movie ticket in 1977?

According to Box Office Mojo, the average price of a ticket was $2.23 in 1977.

What was 1000 in today's money worth in 1968?

What cost $1000 dollars in 1960 would now cost $6,929 dollars.

Why might students be affected adversely by inflation?

They come out of school and can get a good paying job due to high money circulation and low prices

How bank protect themselves against inflation?

my answers: the general price of goods will increase. Much money will purchase fewer goods. The producer will have to produce more so as to increase it sales. The public will suffer for this actions. Bank lending rate will be higher as demand for money will be of great importance.

What is the current rate of inflation in Pakistan as of 2012?

artments > Bureau of Statistics > NWFP >Inflation Rates in Pakistan,1990-91 to 2007-08

YearConsumer Price Index (CPI) at 2000-01 Base = 100Inflation Rate (Based on CPI)1990-9143.2012.661991-9247.4110.581992-9352.079.831993-9457.9411.271994-9565.4813.021995-9672.5510.791996-9781.1111.801997-9887.457.811998-9992.465.741999-0095.783.582000-01100.004.412001-02103.543.542002-03106.753.102003-04111.634.572004-05121.989.282005-06131.647.922006-07141.877.77(July - April)2006-07141.237.892007-08155.7410.30

SOURCE:Economic Survey of Pakistan,2007-08

Does reduction in the growth of money reduce the rate of inflation?

That is how it is supposed to work. The fewer dollars, the more a dollar is worth.

How much would ten thousand dollars in 1956 be worth today?

It would be worth $10,000. If you deposited the money into an interest bearing account you would only be able to figure it out if you figure out the annual rate, times the number of years and add the $10,000.

3 A dollar today is worth more than a dollar to be received in the future because?

there are two reasons.

1. A dollar today can earn interest so you will have more than a dollar in the future.

2. Inflation will reduce the purchasing power a dollar over time, so it's better to get the dollar today and spend it today because it won't buy as much stuff tomorrow.

What are the causes of inflationary gap?

Inflationary gaps can arise when the economy has grown for a long time on the back of a high level of aggregate demand. Total spending may rise faster than the economy's ability to supply goods and services. As a result, actual GDP may exceed potential GDP leading to a positive output gap in the economy.

What is value in dollars of 4000 pounds sterling in 1850?

One way to work this out would be to find out the price in 1950 of gold/silver, work out how much Gold £40,000 would have bought back then and then apply today's gold prices to arrive at the answer. In 1950 the average price of a troy ounce was $34.72. The GBP/USD exchange rate was roughly .42p to $1 so £40,000 was equivalent to $95,238. This would have bought ~2743 troy ounces. At today's gold price ($1245) this would be equivalent to $3,415,072 or £2,276,714. Obviously these are not exact but should be more or less correct.

What was the price of milk in 1944?

1918 saw the average raise rise to $875 per year. The average house cost $6,715 and the average car cost $360. Although it is difficult to find the price of a pint of milk, a gallon of milk cost around 55 cents in 1918.

How does inflation affect employment?

If the employer is unwilling or unable to inflation proof the salaries of his employees, they will obviously become disillusioned and disgruntled. Some may seek greener pastures and if those that leave include key individuals, the profitablity of the company may be adversely affected.

Why the inflation rate is calculated?

Inflation is measured by calculating the percentage rate of change of price index,

which is

calledthe inflation rate. The rate of inflation is usually expressed in annualised term,

though the measurment periods are usually different from one year. Inflation

rate= p - P /P *100

i.e, p minus P divided by P into100.

Where, p= current average price level, P= price level a year ago.

Reasonable monetary policy during a period of high inflation?

During times of high inflation, it is best to regulate the price increase of the retailers. Policies should include price regulation, and consumer control.

What is usd 5000 in 1988 worth today?

$5,000.00 in 1988 had the same buying power as $10,248.05 in 2016.

How much would 1 dollar in 1953 be worth in 2010 dollars?

$1.00 in 1950 had the same buying power as $10.02 in 2016. Annual inflation over this period was about 3.55%.

Why government want to have low unemployment and low rate of inflation?

Lower unemployment means there are more people with incomes this means the government will receive more income tax. Furthermore there are less people dependent on the government such as benefits therefore the government is spending less or they can use that money for healthcare, education or policing. More families with a higher income will result in higher consumption this means more money from VAT.

High inflation simply means an increase in price over a period of time, the government wants to keep inflation down as it means prices will not be ridiculously high.