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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
Impact of inflation on insurance industry?
Inflation is rise in price of commodities in the economy. Inflation takes away the spending capacity from a consumer in an economy. As such premium must be paid during the initial period. However when people are facing a hard time fulfilling their basic needs such as rations how can we expect people to pay premium? Premium is paid to insure themselves from risk. But context here is different. People will be facing tough situation and encountering sky-rocketting price meaning spending power of consumer will decrease. So there will be decrease in number of insured around the world if the inflation hit hard.
What is the value of a 2 headed 1972 silver dollar?
This is a magician's or novelty coin, manufactured from two regular coins. They can be bought or sold for around $3-5. Because they did not leave the Mint in this condition, any collectible value the 1972 dollar may have had is negated by the modification. 2-headed novelty coins are usually made from the smaller denomination coins, like nickels and quarters. A 2-headed Eisenhower dollar is actually a bit rarer. These generally sell in the $15-$20 range.
Why might economic scarcity lead to increased warfare?
it might lead to warfare because people will figh other countries for there resources
What are the implications of rising inflation to an economy?
No economic growth or development, foreign exchange reserve and impact on the monetary policy.
Inflation can be very costly, and is generally exponentially increasing in cost as it increases linearly. Most economists believe that inflation over 10% a year in an economy would be disastrous in the long-run. Here are the three main sources of cost due to inflation:
1) Shoe-leather costs, which are incurred due to individuals having to move to spend or use money more often, since money is more valuable when first received than it will be later.
2) Menu costs, which are incurred because firms have to adjust their prices and resources listing their prices (and this requires time and effort).
3) Redistributional costs, which are incurred on account of economic agents changing the distribution of their assets as the value of money itself changes.
Whats does an increase in nominal GDP imply?
When the nominal GDP increases it implies that prices have increased. Nominal GDP is current prices and real GDP takes prices changes into account.
Gas crisis
Lowest inflation rate in world?
The lowest inflation rate in the world is 0% in Japan. There are countries in which there is a negative inflation, but these cases are not called low inflation, they are called deflation. the highest deflation rate is 3% in Nauru (you may as well call it a -3% inflation)
Which 1976 candidate told Time he would fight unemployment and take your chances on inflation?
jimmy carter
How can targeting interest rates result in inflation sprialing out of control?
It could cause a kind of rubber-band effect on inflation. For instance, if the market is trying to keep interest rates high and the fed keeps dumping money into the market to try to keep interest rates low, one of these forces has to give. The market is going to be suddenly flushed with cash and risks an event that causes what would normally be a natural decrease in interest rates. This would cause a huge interest rate fluctuation and subsequent inflation.
What is the value of 1879 silver dollar?
Assuming the coin is circulated and has no mintmarks, the 1879 Morgan is a common date. For an accurate assessment of value the coin needs to be seen and graded. Most coins of this year have seen heavy use and show a lot of wear. In general retail values for low grade coins are $17.00-$18.00, better grade are $19.00-$21.00 and coins showing almost no wear run from $22.00-$26.00. Values are a market average and only for coins in collectible condition, coins that are bent, corroded, scratched or have been cleaned have far less value if any to a collector or dealer
Explain why an expectation of Central Bank official rate hikes would cause bond price to fall?
The price of bonds is inversely related to interest rates. If interest rates rise, the value of existing bonds will decline since the coupon rate available on newly issued debt will be higher due to the increase in interest rates. The price of existing bonds will drop in price until the bond provides a yield similar to comparable newly issued debt.
How a shortage of labor might be a major cause of inflation?
- If wages rise, firms will try to pass on the cost increases to customers - leading to cost push inflation.
- If wages rise, workers have an increase in income leading to higher disposable income and higher spending. - this can cause demand pull inflation.
However, it is possible that even with a shortage of labour we may avoid inflation.
- If firms have monopsony power and can avoid paying higher wages despite the shortage
- If vacancies are being filled by migrants from abroad. (though you could say if migrants can enter the labour market then there isn't a shortage, but, in the boom years of 2003-07, migrant labour was important for keeping inflationary pressures low in economies like Ireland and UK.
- If other inflationary pressures are muted. A shortage of labour puts upward pressure on wage increases, but, other factors affect inflation. If interest rates are being increased and the economy is experiencing efficiency savings, overall inflation may not be affected very much.
What is the value of a 1967 Kennedy dollar?
The US didn't make any $1 coins from 1936 to 1970 inclusive. Please check the back of your coin - it's a HALF dollar.
44 percent
When injection exceeds leakage aggregate demand will high it followed by high employment , with rise in price economic growth will ensures . For detail explanation you can take from Tutorpace
What is an acceptable inflation rate?
Each government will have a set target with which the inflation rate should lie. For example, in NZ the inflation rate target is 1-3%.
Gas is created, increasing n; and The added gas increases the pressure and then the volume of the airbag. for my fellow cheaters out there
How do you blow up an inflatable?
It's easy and enjoyable to blow up an inflatable by mouth.
First, lay the inflatable out flat and find the valve. Once you have found the valve, place it in your mouth. Push down gently on the end of the valve with your teeth, take a deep breath, and blow for as long as you are comfortable. Continue to do so, taking deep breaths between each blow, until the inflatable is fully inflated, then put the lid into the valve, push it in, and the inflatable is now ready for use.
