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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.
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Employee Communication More widely called internal communications, employee communication is must in retaining a happy and productive workforce. Internal communications to e
Ask question # The price of Canadian-grown peaches skyrockets during an unusually cold summer that reduces the size of the peach harvest. b. An increase in income leads to an incr
1) Vitamin A Vitamin A has been chosen as the vitamin to be included in the supplement since it has a role in several functions some of which as follows: 1. Helps in proper vision.
Suppose that two wage regressions are estimated for native and white workers: Wn = 5.0 + 0.10S Ww = 6.0 + 0.14S Pick a reasonable average level of schooling for white and Native wo
consumers oriented application
Price elasticity is used in economics to determine the changes in price of goods and services. It measures the change in price demanded and quality supplied. Determinants of pri
#question. what is the underlying reason for the law of increasing opportunity cost?
WHAT ARE THE PRACTICAL IMPORTANCE OF INCOME ELASTICITY OF DEMAND?
pls i want to estimate a cost function for the data i coollected from a research on cassava production .i have the cost for each input and output but do not how to go abo0ut it.
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