Advertisements
Advertisements
प्रश्न
Mention the effect of inflation on the value of money.
Explain the effect of inflation on value of money.
उत्तर
- By value of money, we mean its purchasing power or buying capacity. It refers to the amount of things that can be exchanged for a unit of money.
- The value of money depends upon the prices of goods and services.
- During inflation, prices of goods and services increase. Therefore, the purchasing power of money falls. There exists an inverse relationship between price level and value of money.
APPEARS IN
संबंधित प्रश्न
Answer the following :
What are the Non - economic effects of inflation?
Answer the following question in one or two sentences.
Explain the term deficit Financing.
The debt which yields income to the government is called as ______.
Explain how taxes can bring about equality in income distribution.
Examine any three adverse or evil effects of inflation on production.
Identity the correct statement from the following:
Observe the relationship of the first pair of words and complete the second pair.
During inflation the debtors gain.
During inflation the ______ lose.
Purchasing power of money falls when ______.
State running inflation impact on fixed income groups.
State the effect of inflation on creditors.
Why do producers gain in the short run during inflation?
Discuss the effects of inflation on production.
How does inflation affect the following?
Debtors and creditors
How does inflation affect the following?
Farmers
Explain the impact of inflation on producers in the short run.
