66. Draw the graph of the supply and demand of money. There is a technological improvement in clearing arrangements. Label! Write down whether inflation or deflation is the result (5 points)
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- How does indexing wage contracts to inflation help workers?3. Identifying costs of inflationLarry manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value. What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the of inflation.(1) Inflation is a hectic problem of our economy especially in today's life. How this problem influences the economic activities in the country? Use your personal opinion to answer that what should we do to control inflation as it is also consumer's community that can contribute economy with consumption pattern of consumers. Make a meaningful report.
- Answer the following question in detail, showing every step of calculation and EXPLAINING why something happens when it happens, use diagram if appropriate. The answers must be typed in MS Word. 1. Suppose you bought shares of a company for TK 10,000 last year, this year you sold it for TK 20,000. You are supposed to pay a 10% tax on capital gain. Explain the impact of a 100% inflation on the capital / gain profit you make.Describe inflation, explain how it happens and describe its effect on purchasing power?If ten years ago the prices of the items bought last month by the average consumer would have been much lower, then one can likely conclude that a. the aggregate price level has declined during this ten-year period b. the average rate of money growth for this ten-year period has been positive C. the average inflation rate for this ten-year period has been positive d. the aggregate price level has risen during this ten-year period
- 1.1. A decline in money purchasing power. Annual inflation was 7%. The percentage of money decreased purchasing power? Task 1.2. How will the purchasing power of money change during the year if there is a constant inflation rate of 1.5% in the quarter? 1.3. The bank pays a constant simple percentage of 10% a year. What amount should be invested in a bank account in order to accrue EUR 1000 after 4 years? 1.4. Holding period yield HPR holding period return. The deposit certificate was purchased 7 months before the maturity of 1000 euro and sold 2 months before the maturity date of the deletion of EUR 1200. What is the profitability of this financial operation for annual fruit in the form of a rate? Objective 1.5. How much money needs to be invested today in a bank that pays 12% a year and capitalizes fruit every quarter to get £1,000 after 6 years? 1.6. The bank is offering 18% a year, inflation is 15% a year. What is the real fruit rate? 1.7. EUR 1500 is invested in the bank account.…12 Commodity currencies are less prone to inflation since they have value as commodities and thus are melted down – smelted - when prices reach a certain point. True or False? ExplainIf the inflation rate is 8% and cost of money is 12%, what interest rate will take care of the inflation and the cost of money ?
- 1. Describe the society having higher inflation.Only typed answer (a) A bank is offering 5-year certificates of deposit (CDs) with a 5% interest rate. The expected inflation rate is 3%. Calculate the expected real interest rate on the CD. (Show your work.(3) Find the trend of a country using the provided CPI based inflation rates Year Inflation rate (%) a Stagflation b Disinflation C Deflation d 2017 2 Creeping inflation 2016 5 2015 6 2014 7 2013 9