Why does the federal government watch the rate of inflation so closely?

Why does the federal government watch the rate of inflation so closely?
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the federal reserve _____ the money supply to lower inflation. -General Knowledge

Description : the federal reserve _____ the money supply to lower inflation. -General Knowledge

Last Answer : The Federal Reserve reduces (decreases) the money supply to lower inflation.

Under managed floating exchange rates, if the rate of inflation in the United States is less than the rate of inflation pf its trading partners, the dollar will likely: A. Appreciate against foreign currencies B. Depreciate against foreign currencies C. Be officially revalued by the government D. Be officially devalued by the government

Description : Under managed floating exchange rates, if the rate of inflation in the United States is less than the rate of inflation pf its trading partners, the dollar will likely: A. Appreciate against ... currencies C. Be officially revalued by the government D. Be officially devalued by the government

Last Answer : A. Appreciate against foreign currencies

Demand pull inflation may be caused by (a) An increase in cost (b) A decrease in interest rate © A reduction in government spending (d) An outward shift of aggregate supply.

Description : Demand pull inflation may be caused by (a) An increase in cost (b) A decrease in interest rate © A reduction in government spending (d) An outward shift of aggregate supply.

Last Answer : (b) A decrease in interest rate

Is the Federal Government directly responsible for America's unemployment rate?

Description : Is the Federal Government directly responsible for America's unemployment rate?

Last Answer : I think we've come to a point in society where technology has replaced a lot of manual labor required jobs. I don't believe its the federal government. I think for the most part the government still ... cheap labor/greed. It's no ones fault, its just the way of progress. Life is a sacrifice.

In the federal government what gs rate is DR-03 equivalent to?

Description : In the federal government what gs rate is DR-03 equivalent to?

Last Answer : Need answer

Given an initial equilibrium in the money market and foreign exchange market, suppose the Federal Reserve increases the money supply of the United States. Under a floating exchange-rate system, the dollar would: A. Appreciate in value relative to other currencies B. Depreciate in value relative to other currencies C. Be officially devalued by the government D. Be officially revalued by the government

Description : Given an initial equilibrium in the money market and foreign exchange market, suppose the Federal Reserve increases the money supply of the United States. Under a floating exchange-rate system, the ... C. Be officially devalued by the government D. Be officially revalued by the government

Last Answer : B. Depreciate in value relative to other currencies

The Government of India has introduced a concept to work closely with local communities for protection and management of forests called

Description : The Government of India has introduced a concept to work closely with local communities for protection and management of forests called

Last Answer : The Government of India has introduced a concept to work closely with local communities for ... C. Appiko Movement D. Joint Forest Management

What enlightenment philosopher is most closely associated with the idea that government have the responsibility to guard life liberty and property?

Description : What enlightenment philosopher is most closely associated with the idea that government have the responsibility to guard life liberty and property?

Last Answer : john Locke

What enlightenment philosopher is most closely associated with the idea that government have the responsibility to guard life liberty and property?

Description : What enlightenment philosopher is most closely associated with the idea that government have the responsibility to guard life liberty and property?

Last Answer : john Locke

What would you do if you found out your government had to borrow money from a private bank to run the ecconomy, and that this was the real cause of inflation?

Description : What would you do if you found out your government had to borrow money from a private bank to run the ecconomy, and that this was the real cause of inflation?

Last Answer : My government borrows money from private entities all the time. The government has always been borrowing from private entities, and has never been able to function without it. We’ve never been without a national debt. Buy a Treasury bill?

Inflation can be checked by - (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply

Description : Inflation can be checked by - (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply

Last Answer : (4) decreasing money supply Explanation: The technical and most often used way to control inflation is by tightening the money supply. The logic goes that when people do not have excess money, ... . Most central banks use high interest rates as the traditional way to fight or prevent inflation.

The two types of investments that provide the highest and lowest yields in the Ibbotson study of Stocks, Bonds, Bills and Inflation are A. Large company stocks; U.S. treasury bills B. Large company stocks; Long-term government bonds C. Small company stocks; U.S. Treasury bills D. Small company stocks; preferred stock E. U.S. treasury bills; small company stocks

Description : The two types of investments that provide the highest and lowest yields in the Ibbotson study of Stocks, Bonds, Bills and Inflation are A. Large company stocks; U.S. treasury bills B. Large ... Treasury bills D. Small company stocks; preferred stock E. U.S. treasury bills; small company stocks

Last Answer : C. Small company stocks; U.S. Treasury bills

6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment spending is $2000. In order to avoid recessions and inflation (to have equilibrium), the government should have a: a. balanced budget b. budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C

Description : 6. Assume that Potential Real GDP equals $10,000. National Income is therefore $10,000. Of this, consumers will pay $2,000 in taxes, save $1,000, and spend $7,000 on consumer goods. Business Investment ... . budget deficit of $1000 c. budget surplus of $1000 d. budget deficit of $2000 C C A A C

Last Answer : c. budget surplus of $1000

The function of a government by which it seeks to seek a balance of employment, demand-supply, and inflation, is known as: a) Distribution function b) Allocation function c) Stabilization d) Protection

Description : The function of a government by which it seeks to seek a balance of employment, demand-supply, and inflation, is known as: a) Distribution function b) Allocation function c) Stabilization d) Protection

Last Answer : c) Stabilization

The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic transactions between residents of a country and rest of the world (d) The difference between inflation and unemployment.

Description : The balance of payments equals (a) The difference between household spending over earnings (b) The difference between government expenditure over its income © A measure of the value of economic ... a country and rest of the world (d) The difference between inflation and unemployment.

Last Answer : © A measure of the value of economic transactions between residents of a country and rest of the world

In general, deficit financing can create inflation, but it can be checked if. A) Government expenditure increases the aggregate supply in the aggregate demand ratio B) All the investment is indicated as payment on national debt only C) Only aggregate demand is increased D) All of the above

Description : In general, deficit financing can create inflation, but it can be checked if. A) Government expenditure increases the aggregate supply in the aggregate demand ratio B) All the investment is indicated as payment on national debt only C) Only aggregate demand is increased D) All of the above

Last Answer : Answer: D

Inflation can be checked by (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply

Description : Inflation can be checked by (1) increasing exports (2) increasing money supply (3) increasing Government expenditure (4) decreasing money supply

Last Answer : decreasing money supply

What do you believe is the actual inflation rate in the United States?

Description : What do you believe is the actual inflation rate in the United States?

Last Answer : Higher than the dems claim it to be yet lower than what the reps insist it is. If history has shown us anything, it is that yes it is likely to get worse.

Should minimum wage be tied to the rate of inflation?

Description : Should minimum wage be tied to the rate of inflation?

Last Answer : answer:My instinct tells me yes, but I am, in no way, an economist — so I can’t say for sure. Interested to see what smarter folks than I have to offer.

How do you determine if something is keeping up with the rate of inflation?

Description : How do you determine if something is keeping up with the rate of inflation?

Last Answer : Short it depends. Essentially, based on your numbers, the Peace Corps readjustment allowance has gone up 300% (or 3 times). The inlfation calculator at inflationdata.com says that since 1961 prices have inflated ... coming out in March of 1976 but less than if you were coming out in Jan of 1961.

What is the rate of inflation in 2010-11 financial year ?

Description : What is the rate of inflation in 2010-11 financial year ?

Last Answer : Inflation rate of 7.31% in FY 2010-11.

What is the rate of inflation in 2011-12 financial year ?

Description : What is the rate of inflation in 2011-12 financial year ?

Last Answer : Inflation rate of 7.60% in FY 2011-12

the inflation rate over the last year has been less than 1%, what is the problem in the economy

Description : the inflation rate over the last year has been less than 1%, what is the problem in the economy

Last Answer : Vote republican. The dems don't care about inflation or lack of jobs.

)A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : )A very high rise in National Income at current market prices and a low rise at constant prices reveals - (1) the high rate of growth in the economy at the current period (2) the increased ... period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Last Answer : (3) the improper growth of the economy Explanation: When national output is multiplied by present ruling price, we obtain national income at current prices. On the other hand if the national output is ... not indicate increase in product or output, but is rather due to the rise in price level.

The basis of determining dearness allowance to employees in India is - (1) National Income (2) Consumer Price Index (3) Standard of Living (4) Inflation Rate

Description : The basis of determining dearness allowance to employees in India is - (1) National Income (2) Consumer Price Index (3) Standard of Living (4) Inflation Rate

Last Answer : (2) Consumer Price Index Explanation: The Consumer Price Index Numbers for Industrial Workers CPI (1W) is utilized for fixation and revision of wages and determination of variable Dearness ... utilized as an indicator for measuring inflationary trend in the country and for policy formulations.

As a result of higher rate of inflation in India, the U.S. dollar will - (1) Depreciate (2) Constant (3) Negligible (4) Appreciate

Description : As a result of higher rate of inflation in India, the U.S. dollar will - (1) Depreciate (2) Constant (3) Negligible (4) Appreciate

Last Answer : (4) Appreciate Explanation: A relatively higher rate of inflation causing rise in prices of the goods in India as compared to those in the USA will make US goods relatively cheaper and the Indian ... rate of inflation in India, the US dollar -will appreciate and the Indian rupee will depreciate.

"Dear Money" means - (1) low rate of interest (2) high rate of interest (3) depression (4) inflation

Description : "Dear Money" means - (1) low rate of interest (2) high rate of interest (3) depression (4) inflation

Last Answer : (2) high rate of interest Explanation: Dear Money, also known as tight money, is money which has to be borrowed at a high interest rate, and so restricts expenditure by companies. This situation ... supply and demand. Businesses may have a tough time raising capital during a period of dear money.

Real rate of return is equal to: A. Nominal Rate × Inflation Rate, B.Nominal Rate ÷ Inflation Rate, C. Nominal Rate - Inflation Rate, D. Nominal Rate + Inflation Rate

Description : Real rate of return is equal to:  A. Nominal Rate × Inflation Rate,  B.Nominal Rate ÷ Inflation Rate,  C. Nominal Rate - Inflation Rate,  D. Nominal Rate + Inflation Rate

Last Answer : B.Nominal Rate ÷ Inflation Rate,

If the nominal interest rate is 5% and the inflation rate is 2%, the real interest rate is: a. 2% b. 3% c. 5% d. 7% e. 2 ½%

Description : If the nominal interest rate is 5% and the inflation rate is 2%, the real interest rate is: a. 2% b. 3% c. 5% d. 7% e. 2 ½%

Last Answer : b. 3%

Okun’s law shows the relationship between the following : (a) Unemployment and Growth (b) Employment and Growth (c) Tax rate and Tax revenue (d) Inflation and Employment

Description : Okun’s law shows the relationship between the following : (a) Unemployment and Growth (b) Employment and Growth (c) Tax rate and Tax revenue (d) Inflation and Employment

Last Answer : (a) Unemployment and Growth

During the construction period, price variation clause in contracts caters to (A) Increase in rates of only important materials (B) Variation in cost in materials element, labour element and petrol-oil-lubricant element (C) Variation in total cost of the project on an ad hoc basis (D) Rate of inflation

Description : During the construction period, price variation clause in contracts caters to (A) Increase in rates of only important materials (B) Variation in cost in materials element, labour element and petrol-oil-lubricant ... ) Variation in total cost of the project on an ad hoc basis (D) Rate of inflation

Last Answer : (B) Variation in cost in materials element, labour element and petrol-oil-lubricant element

If interest rates are expected to increase, the coupon payment structure most likely to benefit the issuer is a ______. a) step-up coupon b) inflation-linked coupon c) put option d) cap in a floating-rate note

Description : If interest rates are expected to increase, the coupon payment structure most likely to benefit the issuer is a ______. a) step-up coupon b) inflation-linked coupon c) put option d) cap in a floating-rate note

Last Answer : d) cap in a floating-rate note

Under a pegged exchange-rate system, which does not explain why a country would have a balance-of payments deficit? A. Very high rates of inflation occur domestically B. Foreigners discriminate against domestic products C. Technological advance is superior abroad D. The domestic currency is undervalued relative to other currencies

Description : Under a pegged exchange-rate system, which does not explain why a country would have a balance-of payments deficit? A. Very high rates of inflation occur domestically B. Foreigners ... . Technological advance is superior abroad D. The domestic currency is undervalued relative to other currencies

Last Answer : The domestic currency is undervalued relative to other currencies

Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners: A. U.S. exports tend to rise and imports tend to fall B. U.S. imports tend to rise and exports tend to fall C. U.S. foreign exchange reserves tend to rise D. U.S. foreign exchange reserves remain constant

Description : Under adjustable pegged exchange rates, if the rate of inflation in the United States exceeds the rate of inflation of its trading partners: A. U.S. exports tend to rise and imports tend to fall ... C. U.S. foreign exchange reserves tend to rise D. U.S. foreign exchange reserves remain constant

Last Answer : B. U.S. imports tend to rise and exports tend to fall

The external environment factor that includes: Factors that have a less immediate effect on a business such as the nation's rate of inflation or recession, unemployment rate, or standard of living, is (a) Political factors ; (b) Sociological factors ; (c) Indirect economic factors ; (d) Direct economic factors

Description : The external environment factor that includes: Factors that have a less immediate effect on a business such as the nation's rate of inflation or recession, unemployment rate, or standard of living, is ... ; (b) Sociological factors ; (c) Indirect economic factors ; (d) Direct economic factors

Last Answer : ; (c) Indirect economic factors ;

Which of these would lead to fall in demand for money? (a) Inflation ; (b) Increase in real income ; (c) Increase in real rate of interest ; (d) Increase in wealth

Description : Which of these would lead to fall in demand for money? (a) Inflation ; (b) Increase in real income ; (c) Increase in real rate of interest ; (d) Increase in wealth

Last Answer : (c) Increase in real rate of interest ;

If RBI wants to decrease the money supply in order to check inflation it will (a) Sell bonds ; (b) Increase CRR ; (c) Hike bank rate ; (d) All or any of the above three

Description : If RBI wants to decrease the money supply in order to check inflation it will (a) Sell bonds ; (b) Increase CRR ; (c) Hike bank rate ; (d) All or any of the above three

Last Answer : ; (d) All or any of the above three

RBI check inflation by (a) Increasing bank rate ; (b) Increasing CRR ; (c) Both ; (d) None

Description : RBI check inflation by (a) Increasing bank rate ; (b) Increasing CRR ; (c) Both ; (d) None

Last Answer : ; (c) Both ;

Given Real GDP 8.25%, Nominal GDP 11.25%, Rate of inflation will be (a) 2.5% ; (b) 3% ; (c) 4.25% ; (d) 3.5%

Description : Given Real GDP 8.25%, Nominal GDP 11.25%, Rate of inflation will be (a) 2.5% ; (b) 3% ; (c) 4.25% ; (d) 3.5%

Last Answer : (b) 3% ;

Given Real GDP of 6.5% and rate of inflation of 5.5% nominal GDP will be……. (a) 12% ; (b) 10% ; (c) 10.5% ; (d) 9.5%

Description : Given Real GDP of 6.5% and rate of inflation of 5.5% nominal GDP will be……. (a) 12% ; (b) 10% ; (c) 10.5% ; (d) 9.5%

Last Answer : (a) 12% ;

If Nominal GDP is 11% and Real GDP is 6%, then the difference of 5% represent (a) Depreciation ; (b) Rate of inflation ; (c) Rate of interest ; (d) Tax burden

Description : If Nominal GDP is 11% and Real GDP is 6%, then the difference of 5% represent (a) Depreciation ; (b) Rate of inflation ; (c) Rate of interest ; (d) Tax burden

Last Answer : (b) Rate of inflation ;

Which of the following issue relates to micro-economics (a) Impact of crude price hike on inflation (b) Impact of change in bank rate on bank saving and investment (c) Impact of Information technology on economic growth (d) Impact of shortage of wheat production on wheat prices

Description : Which of the following issue relates to micro-economics (a) Impact of crude price hike on inflation (b) Impact of change in bank rate on bank saving and investment (c) Impact of Information technology on economic growth (d) Impact of shortage of wheat production on wheat prices

Last Answer : (d) Impact of shortage of wheat production on wheat prices 

As a result of higher rate of inflation in India, the U.S. dollar will (1) Depreciate (2) Constant (3) Negligible (4) Appreciate

Description : As a result of higher rate of inflation in India, the U.S. dollar will (1) Depreciate (2) Constant (3) Negligible (4) Appreciate

Last Answer : Appreciate

The basis of determining dearness allowance to employees in India is _______ (1) National Income (2) Consumer Price Index (3) Standard of Living (4) Inflation Rate

Description : The basis of determining dearness allowance to employees in India is _______ (1) National Income (2) Consumer Price Index (3) Standard of Living (4) Inflation Rate

Last Answer : Consumer Price Index

A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production in the current period (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy

Description : A very high rise in National Income at current market prices and a low rise at constant prices reveals (1) the high rate of growth in the economy at the current period (2) the increased production ... (3) the improper growth of the economy (4) the high rate of inflation prevailing in the economy 

Last Answer :  the high rate of inflation prevailing in the economy

Explain the factors that make federal government in India so attractive. -SST 10th

Description : Explain the factors that make federal government in India so attractive. -SST 10th

Last Answer : (i) Mobilisation. (ii) Administrative knowledge of the people at all the levels. (iii) Efficacy to solve all kinds of issues at respective levels.

In regard to recent Presidential elections, isn't it curious how conservative hopefuls so closely emulate the traits driving the business of "professional" wrestling?

Description : In regard to recent Presidential elections, isn't it curious how conservative hopefuls so closely emulate the traits driving the business of "professional" wrestling?

Last Answer : Well, actually, Donald Trump has been involved with WWF/E several times over the past couple of decades*...

When two species interact so closely that they adapt to each other the interaction is called?

Description : When two species interact so closely that they adapt to each other the interaction is called?

Last Answer : coevolution

As the supervisor, you are responsible for transforming your office so that it closely reflects a workplace that values differences in others. How can you support an environment of valuing differences?

Description : As the supervisor, you are responsible for transforming your office so that it closely reflects a workplace that values differences in others. How can you support an environment of valuing differences?

Last Answer : All of the Above....Not sure....

As the supervisor, you are responsible for transforming your office so that it closely reflects a workplace that values differences in others. How can you support an environment of valuing differences?

Description : As the supervisor, you are responsible for transforming your office so that it closely reflects a workplace that values differences in others. How can you support an environment of valuing differences?

Last Answer : All of the Above....Not sure....