If the prices of goods begin to rise rapidly, people may find it difficult to maintain their lifestyles. Explain why
What will be an ideal response?
The prices they pay for goods and services will increase and they will have to make sacrifices in other areas in order to maintain a lifestyle without going deeply into debt.
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The annual price of a one dollar loan is referred to as the:
A) service tax. B) rate of interest. C) discount value. D) principal.
Decreases in consumption, investment, or net exports caused by an increase in government purchases are known as
A) strategic substitution. B) crowding out. C) diminishing returns. D) demand-side effects.
During the 2007-2009 financial crisis the currency ratio
A) increased sharply. B) decreased sharply. C) increased slightly. D) decreased slightly.
If the inflation rate falls, what will happen to the budget deficit?
a. It will rise, because government spending will rise. b. It will rise, because interest payments will rise. c. It will fall, because tax receipts will increase. d. It will fall, because interest payments will fall.