What happens when the situation of inflationary economy arises?

Q: If the price of a good is $200 in 2015 and $204 in 2019, what is the inflation rate? A) 22% B) 20%…

A: Given data: Price of good is $200 in 2005 And price in 2019 is $204

Q: Tuition at XYZ this year cost $61,170. If the inflation rate is 2% for the foreseeable future and if…

A: Today's tuition cost =$61,170  Rate of inflation =2% Given that the cost of tuition rises at the…

Q: What is Mexicos Inflation and Interest rate?

A: According to the Mexico's national index of consumer prices (CPI), Mexico's inflation rate is 3.4%

Q: Inflation is a curse but it may also be a blessing some time. When and how?

A: Inflation is the situation when the price level of goods and services in an economy continues to…

Q: What is the roles of BSP when the society suffers from high inflation rate

A: A very high rate of inflation is always detrimental for an economy as it may lead to evil…

Q: If VIF- variance inflation factor is 1.25 what does it suggest when price is a function of income…

A: The term multicollinearity used to denote the high degree of collinearity but not perfect among the…

Q: Is it common for governments with large debts to promote inflation, in order to pay off their debts…

A: The government has to indulge in different policies and procedures so that it can repay off its debt…

Q: Does reducing purchasing power of a consumer decrease inflation in the economy?

A: Cost increases for virtually all goods and services in the economy are referred to as inflation.…

Q: Why is the axiom of economics state that 2-3% of inflation is a good thing for the economy. Why…

A: When inflation counteracts the negative effects of deflation, it is advantageous.Consumers are…

Q: 1. Calculate the inflation rate for 2007-2008: 2008-2009: 2014-2015: 2015-2016:

A: here we calculate the inflation rate of the following years which are as follow-

Q: In the absence of an inflationary effect, what should we use to account for only the earning power…

A: The rise in the price of services and commodities over time is said as inflation.

Q: 2020 quantity 50 20 5 Assume a hypothetical economy where consumers buy only potatoes, meat and…

A: Inflation is the rate at which the value of a currency is falling and, consequently, the general…

Q: b) Other economists think that there are significant costs associated with inflation above 2-3%.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: What causes Inflation in Economy?

A: (Q) What causes Inflation in the Economy?

Q: Why should the rate at which you earn, interest should be higher than the inflation rate?

A: Inflation Rate: It is the rate at which the general prices of all goods and services in an economy…

Q: If the inflation rate is 8% and cost of money is 12%, what interest rate will take care of the…

A: "Answer:

Q: price index in period 3 is 125 and the price index in period 4 is 120, the rate of inflation between…

A: Price index is measured using fixed basket of goods.

Q: Explain how inflation and income affect-consumer buying decisions.?

A: Inflation refers to the rise in the price level in the economy. The inflation in an economy occurs…

Q: What should be done to compare dollar values of different purchasing power from one period to…

A: Due to the effect of inflation in an economy the purchasing power changes with time, and to compare…

Q: --> In an economy, The inflation rate is 6%. At this situation a person takes a loan at 13% interest…

A: # Before moving on to calculations, we must first understand what actually is the relationship…

Q: Give 5 functions of the BSP when a society suffers from high inflation rate.

A: The Bangko Sentral ng Pilipinas (BSP) is the central bank of the Philippines, it was established on…

Q: List the measure taken for inflation?

A: Inflation means consistent rise in the level of prices.

Q: What is the use of inflation-adjusted figures?

A: Inflation is the cost of goods and services rising across the economy. Because inflation is not a…

Q: What is a SIF?

A: A SIF is a form of Security investment fund that can invest in a variety of assets. It normally…

Q: Will the use pf Interest rates be effective when dealing with cost push inflation? Discuss

A: In an economy, cost-push inflation refers to the rise in the price level due to the supply-side…

Q: es the inflation tax?

A: When inflation increases  Then the value of money held by people reduces as now to purchase same…

Q: Give the roles of BSP when a society suffer from high inflation rate

A: BSP is the Central bank of Philippines. It’s main objective is to promote price stability by…

Q: List

A: Inflation is an economic situation where we can see chronic and sustained rise in the prices of…

Q: hile in an Inflationary period, we would use

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: what is the inflation rate?

A: Given income elasticity of money demand = 0.4           Money supply increases by 20% every year…

Q: pls ans as soon as possible The average rate of inflation since 1970 until 2018 is 3.87%. In 1970,…

A: Inflation means the increase in the price of goods over a certain period of time. Given information,…

Q: Give 5 roles of the BSP when a society suffers from high inflation rate

A: The phenomenon of the rising price level in the economy is known as inflation. Inflation is the…

Q: A loan has an interest rate of 8%, and the inflation rate is 2.4%. What is the loan’s real interest…

A: A real interest rate is interest rate adjusted to remove the effects of inflation and gives the real…

Q: Explain cost Push Inflationary Process in detail.

A: Cost-push rate of inflation happens when in general price level increment (expansion) because of…

Q: Discuss Market and Inflation-Free Interest Rate?

A: The Market interest Rate, also called the nominal interest rate (i) is the rate which is not…

Q: What is the projection of the BSP regarding the inflation in the coming months?

A: The economists at BSP forecast the inflation rate and try to frame the policies according to it. It…

Q: What is the Inflation factor?

A: Inflation is the abnormal increase in the general price level of the economy. When there is…

Q: a year. In 19 years how much will you need to earn per year to maintain the same purchasing power if…

A: We use the formula to find maintain income if inflation is 1.50% per year

Q: How can we measure of Inflation?

A: Inflation is defined as a rise in the general price level of a predetermined basket of goods and…

Q: What are the costs of inflation?

A: Inflation is referred to as the increase in average price level of the economy.

Q: What is the reason of inflation in Pakistan ?

A: Answer: Inflation in Pakistan remains generally very high, but in 2020 it makes another record,…

Q: What has been a typical range of inflation in the U.S. economy in the last decade or so?

A: The inflation refers to the increase in the price level in the economy. The inflation leads to a…

Q: You and your spouse just adopted twin girls, little Heather and Beth. You want to make sure they are…

A: The value of insurance can be calculated by using the following formula.

Q: 52. Retirees have their benefits adjusted annually by the to compensate them for inflation. A. wage…

A: Inflation is the rate at which prices rise over a specific time period. Inflation is often defined…

Q: What is inflationary scenario?

A: Inflation is the rise in the aggregate price level and the inflation rate is the percentage change…

Q: inflation is hectice problem of our economy especially in todays life. how this problem influances…

A: Inflation refers to an increase in prices of goods and services when we compare to previous year…

Q: Does the purchasing power continue to decrease in an inflationary economy?

A: In an economy, purchasing power is an economic term that is used to define the real value of money…

Q: When does the Inflation exceed earning power?

A: Earnings power is a figure that broadcasts a business' capacity to produce benefits in the long run,…