Assignment Help - homework help

  Effects of Inflation - Homework Help

Effects of Inflation

a) Larger Production and Investment

• (If inflation is not caused due to an increase in costs, i.e. cost-push inflation, then costs will always lag behind price increases...)

• As cost always lag behind price increase, this results in larger profit margins which not only stimulate production but also make more funds available for investment.

b) Distribution of Income  

• Inflation will result in some groups to gain at the expense of others.

• Fixed income earners (e.g. employees) will lose while variable income earners (e.g. businessmen) will gain.

c) Standard of Living

• If income of the individuals remains unchanged, any increase in prices will result in an increase in the cost of living and hence a lower standard of living.

d) Balance of Payments

• Domestic inflation will make domestic goods (i.e. our exports) to become relatively more expensive while foreign goods (i.e. imports) to become relatively cheaper.

• This may cause value of export to fall and value of import to rise and a consequent Balance of Payments deficit.

e) External Value of the Currency 

• With persistent price increase, the internal value of the currency (which means the purchasing power) will fall and this will lead to a fall in the external value as we require more of our currency in exchange for foreign currency.

Email based economics assignment help - homework help at TutorsGlobe

Are you searching economics tutor for help with Effects of Inflation questions?  Effects of Inflation topic is not easier to learn without external help?  We at www.tutorsglobe.com offer finest service of economics homework help and economics homework help. Live tutors are available for 24x7 hours helping students in their Effects of Inflation related problems. We provide step by step Effects of Inflation question's answers with 100% plagiarism free content. We prepare quality content and notes for Effects of Inflation topic under economics theory and study material. These are avail for subscribed users and they can get advantages anytime.

Why TutorsGlobe for Effects of Inflation homework help

  • Higher degree holder and experienced tutors network
  • Punctuality and responsibility of work
  • Quality solution with 100% plagiarism free answers
  • Time on Delivery
  • Privacy of information and details
  • Excellence in solving accounting questions in excels and word format.
  • Best tutoring assistance 24x7 hours
Home | Company Overview | Services | Discover Q&A | Sitemap | Contact Us | T & C | Refund Policy | Copyright Policy | Blog | Q&A | Directory

©TutorsGlobe All rights reserved 2022-2023.