Why is inflation risk a business management risk

Assignment Help Business Economics
Reference no: EM13887830

(a) Define the inflation rate. (b) Explain how the CPI differs from the PPI, as a measure of the U.S. inflation rate. (c) Why is inflation risk a business management risk? (d) Which would be better, for the U.S. economy, a low stable inflation rate or deflation? Explain. (e) What U.S. government organization is primarily responsible for controlling the U.S. inflation rate, while helping to reduce cyclical unemployment and increase the U.S. economic growth rate?

Reference no: EM13887830

Questions Cloud

Pricing policy tend to increase the restaurants revenues : A popular restaurant charges lower prices for alcoholic drinks in the late afternoon (4-6pm), but offers no such discounts at lunchtime or on weekends. What is different about demand characteristics for the same product at the same location but at di..
What will happen to supply of loans if private saving rises : Write out the supply of loans formula and use it to show what will happen to the supply of loans if private saving rises, then complete this sentence: What effect will the change in part “a” have on the real interest rate? Draw a graph showing the lo..
Use the principle of contestable markets theory : Use the principle of contestable markets theory, inter-industry competition, and foreign competition to provide an economic argument for or against deregulation of an industry.
What the phantom or compensated budget constraint represents : Explain clearly what the "phantom" or compensated budget constraint represents. Explain clearly what the income and substitution effects are. Use examples if you wish.
Why is inflation risk a business management risk : (a) Define the inflation rate. (b) Explain how the CPI differs from the PPI, as a measure of the U.S. inflation rate. (c) Why is inflation risk a business management risk?
Calculate marginal utility associated with each unit of good : A consumer is deciding how many cups of coffee and how many bus tickets to purchase. The price of a bus ticket is $1.50 and the price of a cup of coffee is $2. The following table describes the total utility derived from the two goods. Calculate the ..
Address great depression-how does it compare to monetarism : How did Maynard Keynes propose to address the Great Depression? Did it differ from the Classical views? How does it compare to Monetarism?
Expectations theory-what is term premium for six period bond : What is the term premium for a 6-period bond if the interest rate on the 6-period bond today is 10 percent and 1-period interest rates are expected to rise by 2% each year from their current level of 4%?
Managing resources to limit effects of the resource curse : From your perspective, how would suggest managing resources to limit the effects of the resource curse? If you were to conduct a Cost-Benefit Analysis of an open pit mine, other than accounting costs (construction, labor, operations and maintenance),..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Effect on gold consumption also mining of an increased

Illustrate what is now the effect on gold consumption also mining of an increased utilize of gold as money.

  Similarities between latent theory and trajectory theory

Define the differences and/or similarities between the latent theory and the trajectory theory. Which one do you feel better defines why individuals commit crimes?

  How economic conditions affect interest rates and bond yield

How economic conditions affect interest rates and bond yields? Over the past six months, U.S. interest rate have declined, and Canadian interest rate have increased, The U.S. economy has weakened over the past year , and the Canadian economy has impr..

  Optimal capital structure after the breakup

When the Bell System was broken up, the old AT&T was split into a new AT&T in addition to seven regional telephone companies. The specific reason for forcing the breakup was to increase the degree of competition in the telephone industry. Do you thin..

  Q1 from 1947 to 1997 the cpi in us raised to 637 therefore

q1. from 1947 to 1997 the cpi in us raised to 637 therefore inflation rose 637. use this fact to adjust each of the

  Show the equilibrium effects on consumption and hours worked

Show the equilibrium effects on consumption and hours worked of and increase in G of this type are ambiguous but that output increases.

  Examples of firms using attachment bias to increase profits

Are there any nice examples of firms using attachment bias to increase profits? Examples from the academic literature or well-motivated anecdotes are both acceptable. For instance, pet stores seem to let you play with the animals and GM used to have ..

  There are n ge 3 doctors who have created a partnership in

there are n ge 3 doctors who have created a partnership. in each period each doctor decides how hard to work. let eti

  Advantage of the theory of tax capitalization

In order to host the Winter Olympic Games the city of Vancouver incurred a large debt, which will have to be repaid over time. Reflecting on this fact, one Vancouver resident complained, “The average guy is going to see his taxes increase” [Austen, 2..

  Output firm with decreasing return-to-scale technology

Using graph, illustrate the effect of an increase of the input price on the production and profit of a one input-one output firm with decreasing return-to-scale technology?

  What are consumer and producer surpluses and total welfare

Suppose that a monopolist sells a product to consumers with an aggregate demand that is downward sloping in quantity, D(Q) = 200 − 2Q. The total cost of producing Q units is C(Q) = 20Q + 2Q2. What are the consumer and producer surpluses (CS and PS) a..

  If interest is compounded per year

If interest is compounded at 15% per year, how long (i.e., the number of year-long periods) will it take for $50,000 to accumulate to $66,125? Hint: you can check your work using the FV function in Excel with the annual payment set to zero, since we ..

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