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Effects of inflation:
On Income Earners:Those on fixed incomes or assets (fixed in nominal terms) lose. However, those on incomes, which are directly related to the price level, real incomes may remain relatively unchanged or may even increase.On Profits: Generally, profits increase when the inflation is the demand pull type and decline when the inflation is the cost push type. During demand pull inflation the prices of final goods and services tend to be more flexible in an upward direction than many other prices.On Lenders and Borrowers:Inflation tends to encourage borrowing and discourage lending. This is so because what is borrowed today which could have been used to purchase, say a bowl of gari today, would not enable the creditor to purchase the same bowl of gari when the loan is paid back. This is true only when nominal interest rate is fixed or rises at a lower pace than inflation.On Production: Demand pull inflation may lead to inefficiency in production since competitive pressures to improve both product and performance will be greatly reduced.Cost-push inflation however, puts a premium on efficiency.On Foreign Trade:Rising domestic prices can hurt exports.If domestic prices are rising faster than the rest of the world prices, exports will fall and imports will tend to increase and this will invariably affect our net exports and may have devastating balance of payment implications.
The Schrodinger wave equation generalizes the fitting-in-of-waves procedure. The waves that "fit" into the region to which the particle is contained can be recognized "by inspect
"price is becoming cheaper,yet the demand for car is not rising".does it mean law of demand is not operative?
The minimum wage was increased in 1996 amid cries by various economists that it would cause unemployment. Critics shown that the last time the minimum wage went up the si
Methods of Forecasting The various methods of forecasting demand may be grouped under the followings categories: Opinion Polling Method: In this method the opinion
Explain about the term cost function. Cost Functions This function measures the minimum cost of producing a specified level of output for some fixed factor prices. Likewise
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The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded.
what is the langrangian function
Q. What do you meant by Informal Economy? Informal Economy:Informal sector of the economy represents the production of services and goods for the own-use of the producers or fo
Describe one case that fits the story of Prisoner Dilemma in not more than 10 sentences. It should fit the following features and it should not be any of the examples we already ta
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