What is Inflation rate? ***I have to write a report for finance class, would like some...

What is Inflation rate? ***I have to write a report for finance class, would like some ideas to help me out please.

Expert Solution

ANSWER DOWN BELOW. FEEL FREE TO ASK ANY DOUBTS. THUMBS UP PLEASE.

Inflation is a general increase in the price of goods and services in the economy over a period of time.

1. When the inflation rate is high then overall prices increase with a high rate.

2. It means it will reduce the purchasing power for the same amount of money.

3. So the previously taken financing becomes cheap during high inflation and vice versa.

(But the new financing becomes costlier in nominal terms

Nominal rate = Real rate+ Inflation).

If the inflation rate is high, interest rate high.

Inflation rate low, interest rate low.

When inflation is high it can be controlled by reducing/tightening the money supply in the economy. By increasing the interest rates the money supply can be brought into control because when the interest rates are high the borrowing will it reduce.

The downside of it is that it will slow down the economy. Due to higher borrowing cost, there is less business spending and it creates unemployment.

jeff jeffy answered 2 years ago

I have a BigInt class I created that works correctly. I would like to add a...

I have a BigInt class I created that works correctly. I would like to add a constructor BigInt(string s, int base) that creates a BigInt operating in the given base. The newly extended class should work with any base between 2 and 36, using the digits 0, 1, …, 9, A, B, C, …, Z. How do I do this from what I have? (you may add new data members and such of course) #include <string> #include <vector> class BigInt...

I would like to have a response on this form or post for my psychology class....

I would like to have a response on this form or post for my psychology class. My paper will examine Autism throughout the lifespan. Specifically I am trying to determine if there is a time throughout one's lifetime where techniques to 'treat' an Autism disorder are most effective. While there are many symptoms of Autism including social, cognitive and even psychological 'deficiencies' compared to an individual without autism, I am only looking at treating the individuals cognitions, or at least...

I would like to have a response on this forms or post for my psychology class....

I would like to have a response on this forms or post for my psychology class. The focus of my paper is on the relationship between a father and daughter, and how that influences daughters’ selection of romantic partners in emerging adulthood. I wanted to look at research on the effects of the fathers’ own attachment, as well as maladaptive parenting behaviors/styles, and if this is connected and transferred to future partners. I looked at research on attachment styles of...

i have a skeleton class and i have to fill some methods of this class. i...

i have a skeleton class and i have to fill some methods of this class. i am having difficulties especially with the findAppointment method. so this is the problem. Implement a superclass Appointment and subclasses OneTime, Daily, and Monthly. An Appointment has a description (for example “see the dentist”) and a date. Write a method occursOn(int year, int month, int day) that checks whether the appointment occurs on that date. For example, for a monthly appointment, you must check whether...

Corporate finance I would like for you to provide feedback on the course. What aspects of...

Corporate finance I would like for you to provide feedback on the course. What aspects of the course did you like and what aspects could be improved. Please be specific in your feedback

what are the differences between GDP deflator, inflation and price index? I would like to know...

what are the differences between GDP deflator, inflation and price index? I would like to know more about in detail

I am in a statistics class. When I graduate, I would like to work in an...

I am in a statistics class. When I graduate, I would like to work in an area where I can help restructure businesses that are failing and make them successful. My professor has asked me where in my career that I think I will use the process of data collection. He has asked me to provide 2 examples. This is my first statistics class, so I don't really know of how to give him any examples. Can you please give...

How to Write a chemistry Lab report? I have to write a chemistry lab report, also...

How to Write a chemistry Lab report? I have to write a chemistry lab report, also to presnte it. The paper should incloud: - Abstract - Introduction - Methods - Results - Discussion - Conclusion - Confined research - Citation Can I have help to describe for me what to write in general in each section of the worlds above (i mean what should write about: is it the equation and describ it? or just write a general info? or...

I would like to know some good sources to look up to find answers on what...

I would like to know some good sources to look up to find answers on what fiscal policies have been carried out in the past 2 years, and whether it was pro or counter cyclical.

I have a question. I am doing revenue report project. I have to write an efficient...

I have a question. I am doing revenue report project. I have to write an efficient and effeictive means of testing the control. For payment control, the related assertion is Accuray, and Completeness. Possible test of effectiveness is observe card and cash transaction procedures from start to finish. I can't come up with any other effectivness. Please help me. Thanks.

Question