Does the description of inertial inflation rely more on economic ...

[casperchen82]

Does the description of inertial inflation rely more on economic or political factors? Explain.
 
  What will be an ideal response?

Question 2

Net Present Value measures the
 
  a. total value of profits over the life of an investment
  b. discounted value of profits over the life of an investment
  c. discounted value of revenues over the life of an investment
  d. interest rate paid on funds borrowed for an investment
  e. none of the above

[Sammyo]

Answer to Question 1

The economic issue has to do with loss of purchasing power by groups most hurt by inflation, while the degree of success met with by groups trying to maintain their purchasing power is more a political issue. Students should recognize that there is no clear dividing line, however.

Answer to Question 2

B