What could cause rise in inflation

Assignment Help Business Economics
Reference no: EM131097198

When inflation occurs some economic agents gain and some lose. Who would gain and lose if deflation occurs? Why? What will happen to interest rates and investment according to Keynesian and Classical/ Monetarist theories? Is inflation still a possible threat? What could cause a rise in inflation? Suggest some possible scenarios.

Reference no: EM131097198

Questions Cloud

Each submarket and the price charged in each : A monopolist has two distinct, identifiable subgroups in its market. The market demand function for group A is Qa = 1000 – 4Pa and that for group B is Qb = 500 – Pb. With total cost given by C = 100Q, find the amount sold to each submarket and the pr..
Pioneer trial ultramarathon : ABC Inc., sponsors the "Pioneer Trial Ultramarathon," with an advertised first price of $10,000. The rules require the competitors to run 100 miles from the floor of Blackwater Canyon to the top of the Pinnacle Mountain. The rules also provide that A..
Find the subgame perfect nash equilibrium in this game : Consider a duopoly with differentiated goods in which firms choose prices sequentially. Suppose firm 1 chooses its price p1 first. Then, having observed p1, firm 2 chooses its price, p2. Find the subgame perfect Nash equilibrium (SPE) in this game.
What interest rate should bond buyer pay for risk-less bond : The market interest rate is 6%. If they buy a riskless bond they will earn the full interest. Considering the information given, what interest rate should a bond buyer pay for a risk-less bond?
What could cause rise in inflation : When inflation occurs some economic agents gain and some lose. Who would gain and lose if deflation occurs? Why? What will happen to interest rates and investment according to Keynesian and Classical/ Monetarist theories? Is inflation still a possibl..
How much consumer surplus does each type of customer gain : A monopolist produces a good at zero marginal cost. It knows that two equal sized subgroups exist in the market for its produce, but cannot differentiate between them by sight. Group I value quality of service highly. Why may these have been suggeste..
Code of ethics say about financial conflicts of interest : Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, he..
Stacey and betsy are contestants on game show : Stacey and Betsy are contestants on a game show. They each select a wrapped box from four choices. They know that one box contains $100 and the other three boxes contain $1000, $10000, $100000. Stacey agrees to trade. Did Betsy’s husband give her goo..
Has the company ever failed to be awarded a contract : Based on your research, has the company ever failed to be awarded a contract? If so, did the company resubmit or cure the alleged defects in the bid? How?

Reviews

Write a Review

Business Economics Questions & Answers

  Long -run marginal propensity

Explain why this formulation of consumption may provide a more accurate description of consumption than the simple consumption function that depends only on current income.

  Estimated the demand for cable television services

An economist has estimated the demand for cable television services in Eastern Pennsylvania, and has found the following elasticities: If the cable television company wants to increase revenues, it should increase price.

  New radius of the factorys market area

Now suppose the factory develops an innovation that allows it to produce a shirt for the equivalent of 1 loaf of bread. What is the new radius of the factory's market area.

  Merged firm would have volume-price elasticity of demand

Two clinics want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $60,000. One clinic has a volume of 7,200, marginal costs of $60, and a market share of 2 percent. The other clinic has a volume of 10,800, margina..

  Nash equilibrium-set up the game as a simultaneous move game

After a few years of monopoly, the family that owns the Coca-cola monopoly gets in a fight, and they split the company in two. Now there are two large Coca-cola retailers in your area, and each retailer must decide whether to charge a high or low pri..

  What are the characteristics of perfect competition

What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition? Imagine you are running a firm with the characteristics of a perfectly competitive firm. Describe ..

  Calculate the price elasticity of demand

Using the midpoint method, calculate and interpret the price elasticity of demand for the following situation: When the price of oranges increases from $1.00 per pound to $1.50 per pound, quantity demanded falls from 500 pounds to 400 pounds. Calcula..

  Calculate the power sizing exponent for this equipment

The cost of a 110hp generator today is $155,000. The cost of a 65hp generator 6 years ago was $56,000. The generator equipment index today is 193 and 6 years ago it was 143. Calculate the power sizing exponent for this equipment.

  Sovereign wealth funds significantly increased

Through the summer and fall of? 2008, as the global financial crisis began to take? hold, international financial institutions and sovereign wealth funds significantly increased their purchases of U.S. Treasury securities as a safe haven investment. ..

  Calculate the cross-price elasticity

Panel B shows how the demand for X shifts when the price of related good Y increases from $60 to $68. Use the information in Panel B to calculate the cross-price elasticity. Are goods X and Y substitutes or complements?

  What is the payoff to an individual choosing to be criminal

Consider a neighborhood with 1000 residents. Each individual must choose (let’s assume simultaneously) whether to be a criminal or not. If an individual chooses to attempt a criminal act, their payoff is 200 if they succeed, but -300 if they are caug..

  Discuss in terms of economies of scale and scope

According to Haskel and Sadun(2009), the United Kingdom started regulating the size of grocery stores in the early 1990s, and today the average size of a typical U.K. grocery store is roughly half the size of a typical U.S. store and two-thirds the s..

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