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What types of people are most negatively affected by inflation and the depreciation of the dollar?
Wiki User
∙ 11y ago
Poor people loose the most from inflation. Their scarce dollars buy less and less. Rich people, especially the ultra rich power brokers gain the most from inflation because 1. They have plenty of money and are not really affected by inflation. 2. They typically own the means of production and higher prices just means more money for them.
Wiki User
∙ 11y ago
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Inflation is undesirable because it?
Inflation is considered to be undesirable because it arbitrarily redistributes wealth and real income. It also causes consumers to pay more for goods and services and causes the value of the dollar to go down.
What are some reforms that were used in Argentina to try to battle inflation?
In 1991, Domingo Cavallo set out to reverse Argentina's inflation through free-market reforms such as open trade. The cornerstone of the reform process was a currency board, under which the peso was fixed by law at par to the dollar.
Will there ever be a hurricane that causes at least 1 trillion dollars in damage?
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What do Kenya call their one dollar bill?
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Does the dollar store sell plastic army men?
Most all Dollar stores>>>
What is inflation and how bad was it during the civil war?
Inflation is a rise in prices and a depreciation of the currency. The Confederate dollar was not based on assets, but only on the promise of future victory. Owing to the Union Naval blockade, the South could not import or export, and its economy stagnated. Demand for basic commodities rocketed, causing steady inflation. By 1864, the Confederate dollar was only worth about 5 cents.
When you just for inflation which is worth more?
Because inflation is the decrease in the value of a dollar over time, the "older" dollar is always worth more.
Decrease in a dollar value is called?
inflation
Does inflation have anything to do with making a dollar today?
If I understand your question correctly, when dealing with inflation, a dollar earned today is worth more than a dollar earned at any time in the future. This has to do with the concept of the present value of money. Because inflation devalues the dollar over time, a dollar earned today is worth more than say, a dollar earned five years from now.
Why was there a inflation during the Revolutionary War?
During the revolution, the U.S. started printing lots of money to pay for the war, since the federal government couldn't levy taxes due to the laws laid out by the Articles of Confederation. Lots of available money leads to inflation.
When a magazine reports that there has been a depreciation of the dollar what does this mean?
When a magazine reports a depreciation of the dollar, it means that the value of the dollar has decreased relative to other currencies. This can make imports more expensive and exports more attractive, potentially impacting trade balances and economic competitiveness.
What are the reason for the depreciation of us dollars?
When the economy is shrinking, the dollar suffers. The dollar will lose its value and it will take more less foreign currency to equal a dollar.
How much was a dollar in 1984?
A dollar from 1984 would be worth about $2.30 today. That is equivalent to a yearly inflation rate of 2.82 per year for a total inflation rate of 130.6 percent.
Is depreciation normally computed on the basis of the nearest full month and to the nearest dollar?
yes
Will the six million dollar man movie ever be made?
No, but because of depreciation; there may be a 6 Billion Dollar Man movie.
How does inflation effect savers and person on fixed income?
Inflation is the increase of good and services due to a weakening currency. Ex U.S Dollar A saver will only be able to buy less with inflation in mind. People on fixed income are also restricted and since they are on a limited income their dollar buys less beacuse of inflation.
What was the dollar worth in 1970?
In 1970, one dollar was worth one dollar. Adjusted for inflation, one dollar in 1970 is just over $6 in 2014.
