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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
Why did farmers want inflation?
Inflation would help pay off loans Inflation would help pay off loans
What is the value of a dollar?
Money allows the benefits of goods and services to retain their worth over time and distance. Let's say Igrow tomatoes. I can only eat so many when I get a spring crop. But I might be able to trade them for some peaches that my neighbor grows. But what if I want apples? My neighbor's apple tree won't produce fruit until late autumn. By that time my tomatoes will be mush. By being able to sell all of my tomatoes while people need them, I can temporarily convert their value into money, to use later to buy other goods when I want or need them. The same is true of services. I canbuild a fence for a doctor, but if I'm not sick, he has nothing of value to compensate me for my time. By paying me with money, I can transfer the benefit of my work by paying for something that I want from someone else.
What is the unemployement rate and inflation rate for England?
the unemployment rate in England is 7.90% as of July. the inflation rate in England is 1.3%
What are the four basic economic questions?
The four fundamental questions of economics are:
1-What will be produced?
2-How will the goods and services be produced?
3-Who will get goods and services?
4-How will the system accommodate changes?
I hope this helps you. Good luck!
Effect of globalization on Indian economy?
Actually Globalisation happened in 1991 in India. Its main intention was to liberalise, privatise and Globalise the industrial sectors. before this industries were facing so much government intervention, so after that industrial sectors became almost free to make their own decision about establishing a new branch, producing the products and marketing etc,. Drastic change is that now the Indian counsumer is free to purchase the product which he likes from anywhere in the world. foreigners can also buy from India. so the economies off althe nations are interdependent on other. that's why we also have G8 and G20 summits.
How much would 1800 dollars in 1977 be worth today?
You would be the riches' person on Earth
and become president
What effect does inflation rates have on the government?
The true definition of inflation is like the story I am about to tell. If there was only 1 place in the country to buy potatoes, they would be very expensive, right? On the other hand, if a potato truck was on every corner selling them, they would be cheap. Right or wrong? The same with dollar bills and in this day and age, dollars are also introduced into the economy by electronic transfer. The fed government does not control the almighty dollar. The Federal Reserve does. It is our Central Bank which is world wide also. They flood the market with excess dollars that drives down the value or worth of the dollar. The more there is of anything, the less it is worth. Then, when the dollar is worth less, it takes more to buy a given item. That is true inflation. It is not that a gallon of milk is going up, it is the value of the dollar going down and it takes more of them to pay for the same thing. Now, who benefits from this? Let's see. It is not hard to see that if the Fed Reserve floods and floods the market, even in times like these, they are doing it with dollars backed by nothing but the faith and credit of Uncle Sam. Their cost is paper and ink or an electronic check to the Federal gov or Federal Reserve Banks. And I might add they are charging 0% or a little above right now. But when times get good, look out because the Federal Reserve System will raise interest rates dramatically. They will be collecting interest on dollars that are actually worth or backed by NOTHING . Not gold or silver. If money was backed by gold or silver they could not manipulate the interest rate like they do nor print money freely at will. Look at the top of any 1 dollar, 5 dollar, etc. It reads Federal Reserve Note. Only legal because congress voted it in. It is only paper and ink backed up by nothing. It is a note only!
It is the Federal Reserve System or Central Bank that benefits from inflation but at the same time, the federal government has allowed itself to borrow any and all the money it wants from The Federal Reserve. They can walk right in and the man behind the desk simply pulls out the check book and bingo like magic there is all the money they want. And when that check or any check is deposited, it is done so in a bank that is regulated or a member of the Federal Reserve System.
And I don't think they will bounce their own checks, DO YOU? With a Central Bank, any country can go behind the backs of the people and collect more money without them knowing it and revolting.
Effects of inflation in Indian economy?
current Indian inflation is 0.26 on 23/March/2009
1.54 percent for the week ended July 18 compared with last week's minus 1.17 percent.
2.inflation rate in India is 13.5 as on May 2010
How does the fed counteract inflation?
The primary job of the Federal Reserve is to control inflation while avoiding recession. The tools it uses are: * Raising and lowering the Fed Funds rate, Although banks would like to loan out every dollar they can, the Federal Reserve mandates that they keep a certain amount of cash, or reserve balance, on deposit at their local Federal Reserve branch office at all times. The federal funds rate is the rate that banks charge each other for overnight loans of reserve balances. Each month the Fed, through its Federal Open Market Committee (FOMC), targets a specific level for the federal funds rate. This rate directly influences other short-term interest rates, such as deposits, bank loans, credit card interest rates, and adjustable-rate mortgages. Longer-term interest rates are indirectly influenced. Usually, investors want a higher rate for a longer-term Treasury note or bond. * Tightening or relaxing the amount of money allowed into the market, * Raising or lowering the amount of reserves banks need to keep on hand.
What did the Dawes Plan do to deal with runaway German inflation?
The German inflation was brought under control by the Germans themselves in 1923-24. The Dawes Plan was concerned with reparations.
Which of the following groups benefits from unanticipated inflation?
It depends on the situation. Say I put $10,000 in a savings account at 2.5% a year. The expected rate of inflation is 2% so my money is gaining value. However if there's say 3% my money is losing value and the bank benefits because they're paying under the inflation rate.
What is the value of an 1897 silver dollar?
First you need to check the back, above the "DO" in DOLLAR, for a mintmark. There may be a small "O", "S", or "CC" there. There may also be nothing there. In average circulated condition, with a "CC" mintmark, it's worth $70-$75. With any other (or no) mintmark, it's worth $8-$10 In almost uncirculated condition, with a "CC" mintmark, it's worth about $150. With any other (or no) mintmark, it's worth $15-$25 An uncirculated coin will be worth about $250 with a "CC" mintmark, $100 with an "O" mintmark, or $35 with an "S" (or no) mintmark.
How does GDP affect businesses?
Gross domestic product (GDP) is a broad measure of the nation's economic activity. For small businesses, which are often sensitive to the economic climate, GDP can be an important measure of current business prospects. Because GDP measures overall economic output, small businesses may carefully watch GDP figures to determine how the economy is faring and how their own results compare with the results of other businesses.
How rapid inflation can undermine moneys ability to perform each of the three function?
Money is used as a medium of exchange for goods and services, as a unit of account for expressing price, and as a store of value.
People will only accept money in exchange for goods and services and for the work they perform if they can be reasonably certain that the medium of exchange money will retain its value until they are ready to spend it. In runaway inflation's of the thousands or tens of thousands of percent a year, people revert to barter.
Again, drastic inflation greatly reduces money's use as a measure of value, for it is impossible to adjust instantaneously all prices strictly in line with their relative values. Thus, opportunities are afforded to speculators to profit at the expense of the less sophisticated who, eventually, will learn to distrust money's usefulness as a measure of value.
Finally, and most obviously, money's usefulness as a store of value is destroyed in a drastic inflation. The "rule of 70" is instructive here. By dividing the absolute inflation rate into 70, one can estimate how long it takes ones dollar savings to lose half their purchasing power. At 7 percent inflation, the dollar will be worth half as much in ten years.
What is the value of 5000 dollars in 1950?
It would be worth 500 dollars because the amount of money never changes over time. The purchasing power of a US dollar now is about 10-12% of its purchasing power in 1956. The easy way to determine this is with an inflation calculator that is based on changes in the CPI. I recommend http://data.bls.gov/cgi-bin/cpicalc.pl
How much would 15000 dollars in 1983 be worth in 2014?
$15,000 in 1983 had the same buying power as $35,703.61 does in 2014.
What is 1 million dollars in 1969 worth today?
In 2013, the relative value of $1.00from 1969ranges from $4.91to $16.50.
The value of a 1969 dollar ranged from $4.91 to $16.50 in 2013.
$1,000,000 in 1969 would be $4,910,000 to 16,500,000 in 2013.
What is the main reason for inflation rate?
The rise of inflation index is the net result of a cumulative rise of several commodities and power, fuel prices.
The inflation index depending on where in the world will have a set of assets it is based on. The influence of each asset depends on the discretion of that deciding body.
For instance if say the inflation index is made up of 10 asset or asset classes : and say Oil, Gold, Milk, Fruits, Vegetables. Then a rise in one of them will affect a rise in the index.
What is the value of an 1887 silver dollar?
Assuming the coin is circulated and has no mintmark, the 1887 Morgan dollar is very common. Circulated coins are valued at $32.00-$39.00. Values are a market average and only for coins in collectible condition, coins that are bent, corroded, scratched, used as jewelry or have been cleaned have little or no value to a collector or dealer.
What was the Price of milk in 1936?
When Mayfield, Jr., died in 1937, Thomas B. Mayfield III took over the company .... The cost of milk cost increased to between $2.50 and $3.00 per gallon. ...
