Unexpectedly low inflation rate

Assignment Help Business Economics
Reference no: EM13774284

Suppose that inflation was expected to equal 6 per cent in 2015, but prices rose by only 3 per cent. How would this unexpectedly low inflation rate help or hurt each of the following?

a) The federal government

b) A homeowner with a fixed-rate mortgage

c) A worker with a 5-year fixed-term wage contract

d) A casual worker who has no labour contract

e) A private school that has invested some of its endowment in government bonds.

Reference no: EM13774284

Questions Cloud

Why the long-run aggregate-supply curve is vertical : Why the long-run aggregate-supply curve is vertical. Three theories for why the short-run aggregate-supply curve is upward-sloping.
Can traditional project management tools and techniques real : Project management has been applied, but not originated, software development methods. For instance, the traditional, waterfall method can be traced to Winston Royce in 1970 after which project management tools and techniques were applied. Likewise, ..
When a purely competitive market is in equilibrium : When a purely competitive market is in equilibrium:
Follow-the-leader behavior is example of what the text calls : Some kids wait until the school year begins to buy their back-to-school clothes so that they are sure to fit in. Such follow-the-leader behavior is an example of what the text calls:
Unexpectedly low inflation rate : Suppose that inflation was expected to equal 6 per cent in 2015, but prices rose by only 3 per cent. How would this unexpectedly low inflation rate help or hurt each of the following?
Load and unload explosives from a motor vehicle : Develop an answer to each of the following explosive related questions, using at least 200 words total for parts a and b. Paraphrased and/or quoted materials must have accompanying in-text and reference citations in APA format.The DOT regulation at 4..
Firms pay efficiency wages because these wages : Firms pay efficiency wages because these wages:
Person wants to have a bigger house in order to outdo his : The idea that a person wants to have a bigger house in order to outdo his or her neighbors is referred to as:
Concern about nudge policies : Which of the following is not a concern about nudge policies?

Reviews

Write a Review

Business Economics Questions & Answers

  Rent out to wheat farmers

Assume that you own a 10-acre plot of land that you would like to rent out to wheat farmers.

  Evaluate the influences of intellectual predictors

Evaluate the influences of intellectual predictors of the following economic theorists: Adam Smith, David Ricardo, also Karl Marx.

  Consumer spends time t searching for a good

Assume the longer the search goes, the lower price the consumer would pay for the good. Furthermore, assume there are diminishing returns to the search since it is harder to find even lower prices as the search continues; that is: p?(t) > 0. Without ..

  Use the orange points square symbol on the graph

Use the orange points square symbol on the graph below to plot the short-run industry supply curve for the wheat industry.

  Mathew purchased a new smart-phone

Explain how would you conclusion vary for winter months, if bad weather formulate it likely for traffic jams on the highway to increase to 6 days per month.

  Present equivalent of the rental income equals

Suppose that annual income from a rental property is expected to start at?$1,250?per year and decrease at a uniform amount of?$50?each year after the first year for the?17-year? expected life of the property.

  Describe maximizing utility

How many DVD's will she have to sell to keep the store open for an extra hour to make profit, if each DVD is $12.

  Illustrate what was real interest rate that sally earned

She put her savings into mutual fund that paid a nominal interest rate of 7 percent a year. CPI was 165 at beginning of year and 177 at end of year. Illustrate what was real interest rate that Sally earned.

  Calculate the profits of these firms in either case

If collusion is not allowed, what kind of market arrangement do you think is likely to result from competitive interactions among these four firms? Calculate the profits of these firms in either case (a and b).

  Demonstrate and document the trends in medical costs

Utilize Managerial Economics to make your case, and remember that the Senator has not had benefit of the course you are taking. demonstrate and document the trends in medical costs

  What if minimum wage is set

Involuntary unemployment at this wage. If so, how much. Illustrate with a diagram. What if minimum wage is set at 40,000.

  Country could increase national saving rate and therefore

In the post war period, a country could increase the national saving rate and therefore: The depreciation rate in United State is about 4% and population growth rate is 0.9% in 2012 and the technology growth rate is 2.1%. According to the Solow model..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd