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Q: Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500…

A: The loan is the amount of money which would result in the amount of money borrowed and used for…

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A: The regular price is the the original or full price of a product or service before any discounts,…

Q: What impact do small business owners have on the country’s economy?

A: The objective of this question is to understand the role and impact of small businesses on a…

Q: Does reducing purchasing power of a consumer decrease inflation in the economy?

A: Cost increases for virtually all goods and services in the economy are referred to as inflation.…

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A: CORI(Criminal offender record information) or SORI(Sexual offender record information), are the…

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A: Scarcity refers to the limited availability of resources, that are used to produce goods and…

Q: Repayment of loan with interest is a capital expenditure True/False

A: # The upgradation for maintenance of physical assets is counted as capital expenditure.

Q: What is GST in Canada? How does it works? and it's Importance?

A: The Goods and Services Tax (GST) in Canada is a value-added tax introduced by the federal government…

Q: What are the economic costs of taking a vacation

A: There are several financial expenses associated with vacationing, including travel, lodging, food,…

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A: How much output can be generated with a given set of inputs is referred to as productivity in…

Q: Provide a list of HRD and WD programs at non-profit organizations, state agencies, and private…

A: a) Formal Staff Training; b) . Informal Training   Èxplanation:- 1. Systematic training for…

Q: What are the goals of a human resource department?

A: All businesses need money to start off in order to rent a space, buy equipment, or pay for…

Q: How might deflation set off further delation

A: A deflationary spiral can be defined as a "downward price reaction to an economic crisis leading to…

Q: Selecting a Bank: Veronica plans to open a checking account with her $1,200 tax refund check. She…

A: Monthly charges by a bank refer to the fees that customers are required to pay on a regular, usually…

Q: The costs of owning and operating an asset can be divided into two categories. What are they?

A: According to cost theory, there are two different types of cost associated with any economic…

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A: Government Revenue Government revenues are the earnings of the nation or government which are…

Q: A complete Credit policy and procedures document should include which three key areas. Write a…

A: A comprehensive Credit Policy and Procedures document encompasses three key areas critical to…

Q: What are realistic career aspirations of majoring in Business Management?

A: Majoring in Business Management opens up a wide range of career opportunities due to the versatile…

Inflation and Purchasing Power Theory

In economic terms, Inflation refers to the increase in the costs of various commodities which are used in daily lifestyle like food, clothes, transport, etc. over a specific time. It may lead to a fall in the purchasing power of the people and also affects the exchange rate of the currency because of the price increase. As the purchasing power falls the unit of the currency in the economy falls. When the prices of the commodities are decreased, then the purchasing power of the consumers will rise, then it will lead to deflation and changes the currency of the base economy to that of the foreign economy which will lead to change in exchange rates.