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प्रश्न
How does inflation affect the following?
Farmers
State the effect of inflation on the farmers.
State one favourable impact of inflation on the farmers.
उत्तर
- Farmers generally gain during periods of inflation, because they can obtain better prices for their crops during inflation.
- Moreover, farmers are generally debtors as they borrow funds/money for agricultural purposes. Like other debtors, they gain during inflation.
- However, small farmers do not gain much during inflation as the major portion of their produce is not marketed but instead, kept for self-consumption. Moreover, they have to purchase inputs, like seeds, fertilisers, insecticides, etc., at higher prices during inflation.
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संबंधित प्रश्न
Answer the following question in one or two sentences.
Explain the term deficit Financing.
Examine any three adverse or evil effects of inflation on production.
Identity the correct statement from the following:
Purchasing power of money falls when ______.
Which of the following section of the society is most adversely affected by inflation?
State running inflation impact on fixed income groups.
Mention the effect of inflation on the value of money.
State the effect of inflation on creditors.
Why do producers gain in the short run during inflation?
How does inflation affect the distribution of income?
Discuss the effects of inflation on production.
How does inflation affect the following?
Debtors and creditors
Which section of the society is worst affected during inflation? Why?
Explain the impact of inflation on producers in the short run.
