Answer:
The answer is D.
Explanation:
Intuitiveness means understanding or know something without any direct evidence or reasoning process.
Answer:
D
Explanation:
So, lets go over what inflation and purchasing power mean.
Inflation is the increase in money of something.
Purchasing power is a persons ability of pruchasing something.
Now, heres an example. A 300 dollar apple phone was quickly being purchased, and apple infalted the price to 600 dollars. Since people can only afford to purchase so much, some might not be able to afford this. This means not as many people can purchase it.
Since the price was raised, this measn the inflaction was increased.
Since the amount of people that could afford the apple phone shrunk, the purchasing power decreased.
So basically, to summarize this:
As the infaltion of an item is increased, the purchasing power is decreased, for less people can afford the higher price.
Answer:
<u>D - As the rate of inflation increases, purchasing power decreases.</u>
Hope this helps!
Answer:
a.borrowers gain at the expense of lenders.
Explanation:
Suppose the annual rate of inflation has been 3 percent during each of the last three years and that borrowers and lenders have come to expect this rate of inflation. If the inflation rate unexpectedly rises, then borrowers gain at the expense of lenders.
As inflation increases, two things happen
1. The amount of interest paid to lenders technically becomes of smaller value and lenders are loosing while borrowers are paying lesser
2. As inflation sets in, wages are increased to compensate for inflation and since the borrower already owed money before the inflation occurred, now he or she has more money in his or her paycheck to pay off the debt.
Answer:
It will be a nominal increase. Not a real increase in the purchase power of the persons
Explanation:
We will check for the effect of inflation:
18,000 x 251/218 = 20.724,77
18,000 dollars in 2010 have aprroximate the same purchase power of 20,725 dollars in 2018
Therefore, there was no real wroth in the GDP per capita from this time period.
It was all nominal increase, there was no improve in the purchase power of the consumer.