« previous next »

Author Question: Explain whether you agree or disagree with the following statement: The reason that inflation is bad ... (Read 88 times)

Metfan725

  • Hero Member
  • *****
  • Posts: 552
on: Jun 29, 2018
Explain whether you agree or disagree with the following statement: The reason that inflation is bad is because it increases the cost of living  the costs of goods and services we buy  without increasing income in general.
 
  What will be an ideal response?

Question 2

What is a risk premium?
 
  What will be an ideal response?


sultansheikh

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 29, 2018
Answer to Question 1

Disagree. Inflation, in general, must increase both our cost of living and nominal income. The increases in the prices of goods and services will be paid to the factors of production. Since the payments to the factors of production make up national income, nominal income will increase, in general, along with the cost of living.

Answer to Question 2

The maximum price a risk-averse person will pay to avoid taking a risk.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

The Real Reason Why They Repeat the Same 20 Songs on the Radio & TV Nationwide The Real Reason Why They Repeat the Same 20 Songs on the Radio & TV Nationwide
The correct statement about hormones-insulin and glucagon The correct statement about hormones-insulin and glucagon
Observable Universe Before and After Inflation Observable Universe Before and After Inflation
Mechanisms to Explain the Effects of Massage Mechanisms to Explain the Effects of Massage
Give the world a reason to remember your name Give the world a reason to remember your name
Please fully explain the answer with steps Please fully explain the answer with steps
Video: Gas exchange - partial pressure, locations, external and internal respiration

For a complete list of videos, visit our video library