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1 year ago

The situation where the buying power of money in terms of goods and services increases is called:_____

Business

1 answer:

Alla [95]1 year ago

6 0

The situation where the buying power of money in terms of goods and services increases is called <u>deflation</u>

In economics, deflation is a general decline in the price level of goods and services. Deflation occurs when inflation falls below 0% (negative inflation). Inflation depreciates a currency over time, while sudden deflation increases it. As a result, more goods and services can be purchased with the same currency than before. Deflation is different from disinflation, which is a slowdown in the rate of inflation. H. Inflation is declining but still positive.

Economists generally consider sudden deflationary shocks to be a problem in the modern economy. This is because the real value of debt increases, especially if deflation occurs unexpectedly. Deflation can also exacerbate the recession and lead to a deflationary spiral.

Learn more about deflation here: brainly.com/question/13562161

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3 years ago

Last year, you earned a rate of return of 11.29 percent on your bond investments. During that time, the inflation rate was 4.6 p

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Answer:

the real rate of interest of 6.39 %

Explanation:

given,

rate of return on your bond = 11.29 %

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real rate of return = ?

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3 years ago

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polet [3.4K]

The correct answer is capital gain.

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3 years ago

Read 2 more answers

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3 years ago

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RUDIKE [14]

Answer:

exclusive dealing

Explanation:

Exclusive dealing -

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Hence , from the scenario of the question,

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3 years ago