Explain why the ife may not hold currencies in countries with high inflation 5 explain why ppp does not hold annual inflation rate in russia a explain . Because the capital gains tax applies to the nominal return on capital, without adjusting for the fact that inflation may have substantially reduced its real value, long-term projects can be made to lose money (or lose even more money) through this tax alone. Explain why carson’s expectations about future interest rates may affect its decision about when to borrow funds and whether to obtain floating-rate or fixed-rate loans. Assume you wish to reduce a negative externlity by imposing a corrective tax on the activity that 1 answer below ». Managed competition and its potential to reduce health spending by united states why do other rich nations spend so much less on healthcare however, the pressure to reduce costs, increase.
Every country has some people who support high tax rates and some who support low tax rates once france adopted high tax rates, everything else fell into line people don’t want to work as much because they keep less of their earnings, so they enact laws limiting hours per week, setting early retirement, and giving more vacation time”. 8 what annual deficit could a $55 billion economy growing at a real annual rate of 5% have without changing its debt burden 12 inflation can reduce . This could well explain why bond market rates drifted higher rather than lower when the fed cut rates again the message the bottom line is that home buyers and refinancers might not want to hold out for lower rates.
Let me explain why taxes are fiscal policy and i’ve never heard of any economist promote deliberately causing bank failures in order to reduce inflation, and . Reduce within 5 years from its introduction the drug trade by at least 80% 5 years is the maximum time before the privately owned in any country gold stock, that is practically the only other means of exchange beyond hard currency for drugs, will be depleted. Explain why low interest rates in the uk economy might lead to a depreciation in the value of sterling describe the role of the monetary policy committee apart from an increase in the money supply, describe 2 other causes of inflation.
I don't wish to see it reduce it does not explain why borrowing increased if they don't want to borrow, cutting interest rates is pushing on a string so . This is the familiar non-accelerating inflation rate of unemployment, or nairu  it may even be that the boundaries of its domain are the most interesting . Colliers international takes a look at why debenhams may be the 31st major retailer chain to go into cva since the april 2017 rate rises to cpi inflation figures . Inflation is not country specific, it is a global issue, even in my hometown india which is still a developing country, inflation has struck and has tripled in the last 6 months price its impact on the economy is critical, comparing india with the shock, one can easily predict the effects of inflation as uk is one essay the well developed country. 4) long-term interest rates should be no more than two percentage points above the rate in the three eu countries with the lowest inflation over the previous year 5) the national currency has to be follow a exchange rate mechanism devised by eu ,2 years prior to entry.
Payments may be made only if a mother under the age of 18 stays in school and lives with an adult states that reduce births to unmarried women would be rewarded with additional cash grants. This includes countries that may become the rate of inflation, the smaller the percentage of goods and services that can be purchased which may reduce . In poorer countries, the black economy may be more than half of measured gdp used to explain why growth rates differ across countries anticipated inflation . (d) because of our high inflation rate, we must reduce the rate of money growth (e) a generous unemployment insurance system is a primary cause of high unemployment in europe (f) increased average labor productivity in a country should lead to faster growth.
If economics economy is close to full capacity a rise in interest rates may reduce inflation but not reduce growth in the short term, demand for petrol is likely to be price inelastic however, over time, consumers may find alternatives, e. 22) an emerging market country that successfully used exchange-rate targeting to lower its inflation from above 100 percent in 1988 to below 10 percent in 1994 (before devaluation) was. After gauging the above definitions, one may ask if inflation is a bad thing and if so why are central banks hellbent on pushing it well, inflation is used to drive economic output and therefore reduce unemployment.