How do lenders normally react to high inflation rates

Assignment Help Macroeconomics
Reference no: EM131901469

The home where I grew up was purchased by my father for $3,200 in the year 1943. As of the year 2012 its market value was $850,000. Using the concepts of purchasing power, inflation, and price indexes how would you explain this tremendous increase in value?

Are there any other possible outside factors besides the above which might also help explain the increase?

Explain why you think that borrowers of money and lenders of money view inflation differently.How do borrowers normally react to high inflation rates?

How do lenders normally react to high inflation rates?

Discuss whether you feel that there are some positive (good) aspects to high inflation. If you don't feel that there are any, explain why.

Reference no: EM131901469

Questions Cloud

Comparative advantages and engage in trade : An individual or country may have absolute advantage is in producing several products and services whereas others may have comparative advantages
How fiscal policy can increase aggregate supply : 1. In terms of fiscal policy choices, which position is best - Gov't hands off or Gov't hands on?
The net profit margin and dividend payout ratio : The Net Profit Margin and Dividend Payout Ratio are expected to remain constant next year.
Describe the major types and classifications of health care : Describe the major types and classifications of health care information standards and the specific organizations that develop and regulate these standards.
How do lenders normally react to high inflation rates : Are there any other possible outside factors besides the above which might also help explain the increase?
Using earnings growth rate form part forecast : Using the earnings growth rate form part (a) forecast the next 3 years of EPS values. Please show work
Determinants of productivity and provide evidence : Identify one of the determinants of productivity and provide evidence from the real world about whether this determinant is bolstering long run macroeconomic
What should be the expected return of stock : If markets are efficient, what should be the expected return of Stock TTT?
Desired age of retirement : Each student has a desired age of retirement for which the student can figure their term of years to use in the calculations.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Identify the people who are considered unemployed

Identifying Use a graphic organizer like the one below to identify the people who are considered unemployed and those excluded from the civilian labor force.

  Describe how the subsidy alters the market outcome

Explain why the U.S. government subsidizes the industry - Describe how the subsidy alters the market outcome (address issues like the production possibility curve, quantity supplied and demanded and price).

  Who selects the chairperson of the federal reserve system

Explain Who selects the chairperson of the Federal Reserve System? What is the composition and purpose of the Federal Open Market Committee

  Market demand and supply equations

In a market demand and supply equations are: The demand curve is given as: P = 68 - 2Q The supply curve is given as: P = 20 + 2Q. Assuming a perfectly competitive market, (Please show all your work):

  Economy could slip into another recession

The U.S. Congress has done a good job at not spooking the markets. If the markets believed that the Fed would be raising the interest rates, the economy could slip into another recession.

  Explain the general formula for the sample average

Suppose we have a data set with only two observations, y1 and y2. The general formula for the sample average is: sample average=1/2(y1+y2) Suppose y1 and y2 are sampled from the population in such a way so that they are correlated with each other.

  State demand-price function corresponding to demad function

The demand schedule (or demand function or curve) for a good shows the total quantities (Q) that buyers are willing and able to buy at various prices (P) in some period of time. For example, here is a demand function illustrating the very special

  Compute the equilibrium income

An open macroeconomic model is represented parametrically as follows

  Form of interest-bearing loans

What is meant by tied aid? Most nations have increasingly shifted from grants to loans and from untied to tied loans and grants. What are the major disadvantages of tied aid, especially when the aid comes in the form of interest-bearing loans?

  How much will you be earning if you retire at 65

According to the rule of 70, how long will it take for your income to double if you get a 5 percent raise every year? If you start work at the age of 23 earning $40,000 per year and get a 5 percent raise every year, how much will you be earning if yo..

  Example of keynesian unemployment

According to Tobin 1993, examples of Keynesian unemployment includes situation where

  Changes in federal reserve and commercial banks

Show the changes to the T-accounts for the Federal Reserve and for commercial banks when the Federal Reserve buys $50 million in U.S. Treasury bills.

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