1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nydimaria [60]
3 years ago
15

Determine if the people in the example have benefited (i.e., are winners) or have been harmed (i.e., are losers) by unexpected i

nflation.1. Winners2. Losers
Business
1 answer:
nevsk [136]3 years ago
7 0

Answer:

Winners

  • 3rd National, a bank that loaned many people money for home purchases.

Losers

  • Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.
  • Herb, who keeps his savings in an old coffee can.
  • Joy, who has borrowed $40,000 to pay her college education.
  • The US federal government which had almost $15 trillion in debt in 2011.

Explanation:

When unexpected inflation occurs, the usual plan to by Monetary Institutions of a country is raising the interest rates.

By doing that, they want to stop it or slowly decelerate it.

So that it becomes more expensive to take a loan, the idea is to reduce consumption.

In Economics, it's a bad scenario after all. Few winners. Many losers.

So, let's examine them

Winners

  • 3rd National, a bank that loaned many people money for home purchases.

At first, The 3rd National is going to be winning since the value of the debt will rise, depending on the type of contract and an increase in the interest rate will demand corrections on the monthly payments. But on the other hand, the number of default clients and overdue installments will raise for sure.

Losers

  • Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.

Inflation reduces the real buying value of her checks. And her pension can't grow otherwise this will feed the inflation too.

  • Herb, who keeps his savings in an old coffee can.

Since his money is not invested then He's not having any earning that might give him some compensation. So his money is even more devalued.

  • Joy, who has borrowed $40,000 to pay her college education.

Depending on the contract Joy might be sleepless. Either her monthly payments will become more expensive or She may experience difficulties because of the weekly growing prices.

  • The US federal government had almost $15 trillion in debt in 2011.

Certainly, the president and his secretary will have to address the fact that due to inflation and the chosen medicine make the nation's debt up to the sky. They must renegotiate the payment deadlines.

You might be interested in
Ironwood bank is offering a 30 ​-year mortgage with an APR of 6.00 % based on monthly compounding. if you plan to borrow $ 160,0
olga_2 [115]

$160000 x 1.06 = $169600

$169600 - 160000 = $ 9600 per year

$9600 / 12 = $ 800 per month

160000 / 360 month = $ 444.44 per month

800 + 444.44 = $ 1244.44 monthly peyment

4 0
2 years ago
A decision-making process that compares how much time and effort would be invested in providing assistance to the perceived rewa
Sav [38]

Answer:

The correct answer to the following question will be "Cost-benefit analysis".

Explanation:

The cost-benefit analysis also referred to as Benefit-cost analysis, is a strategic approach to evaluating the weaknesses and strengths of approaches used only to define solutions that provide the best strategy for generating advantages while retaining costs.

This can be used to assess implemented or future actions or to measure the benefit of decision, initiative or program costs.

Therefore, this will be the right answer.

3 0
2 years ago
Buatlah Jurnal Penyesuaian dan Jurnal Pembalik dari:
mash [69]

Answer:

I don't understand

Explanation:

English?

8 0
2 years ago
Elmore pays first national bank $1,000 plus a service fee to draw a check on itself made payable to go delivery service. this is
seropon [69]
<span>This is a cashier's cheque. Cheque is an order to a bank to pay a particular amount from the account of an account holder. It is a printed matter. Cashier's cheque is a form of cheque which is guaranteed by the bank. It is drawn on the bank's account and signed by the cashier. It is done for real estate and brokerage transactions.</span>
5 0
2 years ago
Open market operations refer to which action by a central bank?
MAVERICK [17]

Answer:

B so it said 20 characters tooblong and dont copy th rokffkmf

5 0
3 years ago
Read 2 more answers
Other questions:
  • Standard costs have which of the following characteristics? (Check all that apply.)
    9·1 answer
  • You will be administratively suspended if you have a breath or blood alcohol level of ____ or above or refuse to submit to a che
    6·1 answer
  • Westerville Company reported the following results from last year’s operations: Sales $ 1,000,000 Variable expenses 300,000 Cont
    13·1 answer
  • Mark recently graduated with honors from his college. He has bragged to his friends that his academic performance has prepared h
    10·1 answer
  • Consider a small country that is closed to trade, so its net exports are equal to zero. The following equations describe the eco
    8·1 answer
  • The income statement for Splish Traveler Company shows cost of goods sold $307,000 and operating expenses (exclusive of deprecia
    11·1 answer
  • Polls to answer :
    12·1 answer
  • Solving for dominant strategies and the Nash equilibrium Suppose Lorenzo and Neha are playing a game in which both must simultan
    11·1 answer
  • An airport needs a modern material handling system for facilitating access to and from a busy maintenance hangar. A​ second-hand
    10·1 answer
  • What tends to happen to a nation that increases its participation in an open economy with an international sector?.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!