All categories

3 years ago

Who benefits the MOST during periods of unexpected inflation?

Social Studies

1 answer:

Tomtit [17]3 years ago

4 0

The fourth question is correct (D).

To understand this answer, one must understand the mechanism of correction of inflationary processes.

Inflation erodes the purchasing power, thus, the elderly with fixed income will be harmed and not beneficiaries in an inflationary process.

The main mechanism to reduce inflation is the interest rate. In this way, when inflation happens, the Federal Reserve raises the interest rate. This makes public bonds profitable and economic agents begin to use money by buying bonds, reducing the circulation of money and consequently lowering inflation.

For banks that have made adjustable rate loans, this will be a good thing, as interest on the contracts will increase along with the increase in the interest rate, which will make the contracts yield more. Therefore, banks will be the biggest beneficiaries. However, this will happen only when the rate is adjustable.

You might be interested in

Free points: How's everyone doing with the whole chaos of the world going on? I wanna talk to someone, I'm going stir crazy bein

Alexeev081 [22]

Life is hectic rn and I’m bored

8 0

3 years ago

Read 2 more answers

I need help asap somebody help me please !

Katyanochek1 [597]

The two groups were the New england colonist and the British. The British wanted to stay in control of America and the taxes. The colonists wanted to make their own country(America) independent from the British king so he wouldn’t be the king.

5 0

3 years ago

Which of the following statements is true?

baherus [9]

Answer:

(A) Variable costing treats fixed overhead as a period cost.

Explanation:

Variable costing is an important concept in accounting. Under this method, manufacturing overhead is incurred in the period that a product is produced. Variable costing includes only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in unit product costs. Moreover, it treats fixed overhead as a period cost.

5 0

3 years ago

Prepare a dialogue between two friends about development of society

elixir [45]

Explanation:

Hey there!

See below;

Rohan: Hey, I was absent yesterday. So can you please tell me something about what our social teacher taught us?

Mina: Sure! He said some important points on development of society. The development is defined as the positive changes which gives the people good services and facilities in a society is called development of society. Similarly, he discussed on some points to develop our society.

Rohan: Ohh, can you describe them too.

Mina: Yeah! It's very important to develop our society to develop our country. Some major points include; sustainable development, increase in tourism, increase in production of hydroelectricity, etc.

You may be thinking how these helps in development of our society? But actually they are really important factor that can help society developed. On doing sustainable development, increaseing tourism, etc can uplift the living standard of people which directly leads in development of our society.

Rohan: Okay, i got something that i was really unknown. But can you also add some of the points on how it is possible.

Mina: Ohh, okay. Increasing hydroelectricity, tourism, etc cannot be done by us being a small children. But can support in various things like; educating people importance of sustainable development, active people's participation., and so on.

Rohan: Thank you so much.

Mina: My pleasure to help you!

Hope it helps...

8 0

3 years ago

Humanity is lost when people are unable to truly interact, stop communicating with others, and lose respect for individuality

Leona [35]

What are you asking for in this statement

6 0

3 years ago