Inflation

average per capita GNP will decline if population growth is extremely high. 2. INCRESE IN INTEREST RATES Assuming that that GNP has increased but the government doesn’t want to increase the spending patterns of the people in the economy so that the inflation rate could be maintained. So the government increases the interest rates. Since the interest rates have increased, people will be more eager to save instead of spend it so that return on the savings can be increased. In this scenario the…

2.1 The Rational Expectations Hypothesis The rational expectations hypothesis is the hypothesis that, when forming expectations about any variable, people will make optimal use of the available information. This information includes the actual value of certain variables and, more widely, the nature or structure of the world in which people are operating. Let the value a variable ‘y’ takes in period t depend upon, or be a function f (.) of, the value of other variables, x1, x2 and x3 have…

Grade Inflation: the Silent Snake of Education Slowly growing in size and destructive power, grade inflation is the educational equivalent to the snakes of the Everglades. The more and more it is neglected, the bigger, more powerful, and destructive it becomes. Harmless at first, it grows, and the power and threat it poses becomes more and more evident until it is too late to fight back. It has been about 50 years since the term first appeared, and yet few know it even exists. Grade inflation…

“Grade inflation "is a huge problem," says former US senator Hank Brown, who tried to make it a priority issue as president of the University of Colorado in 2006”(Primack 1). Grade inflations are inconvenient to an student's advance education. It harms students, staff, advanced education and society overall. For students, grade inflation implies never knowing where they stand and not working as hard as conceivable to arrive. This presents issues with the way of life that requests moment…

prices to go up, and it was a time of prosperity for Americans. However, eventually the European agricultural capacity recovered and there was a collapse of agricultural incomes and prices. The weakness in agricultural prices meant that overall inflation was low (White). This exemplifies that after a period of wealth there is often a downturn that follows. In the 1990s, exports began to rise again and on a global level too. This led to increased economic growth. There was a shift in exports to…

The development of communication and new technologies, and the use of Internet have made huge economic and political transformations. People, banks and industries use the cyberspace to trade their capitals among national and regional economies. Moreover, economic integration and economic globalization have shrunk economic connections across the globe. Goods and Services can be easily trade among nations because there are several facilities of transportation, control, and payment. The increase…

Introduction The United States (The US) got its independence from Britain in the year 1776. The treaty that made it a nation is the Treaty of Paris that was signed in 1783 (Yang 2012). Before the 19th Century, only 13 states were members of the US. However, during the 19th and 20th Centuries, 37 more states became members of the union. The country expanded through North America, acquiring more land than before and more possessions than it originally had. There are two main traumatic experiences…

A fixed rate is a rate the government or in most cases the central bank sets and maintains as the official exchange rate. A set price will be determined against a major world currency. The most common currency countries usually fix to is the U.S. dollar. The local exchange rate is maintain by the central bank buys and sells its own currency on the foreign exchange market in return for the currency to which it is pegged. According to Xu unlike the fixed rate, a floating exchange rate is…

it has deterred itself from the wave of globalization into becoming an economic and diplomatic power house (Cassas-Zamora 2010). According to Cassas-Zamora (2010), Brazil has refined their middle class by opening up their economy and controlling inflation while at the same time applying social programs in their efforts to entirely reduce poverty. But even though in recent years Brazil has turned globalization into something bigger and better in their country, things weren’t always this way.…

past 55 years, there have been many indications of grade inflation affecting colleges and universities in the United States. Grades first started to rise in the 1960s, flattened in the 1970s, and rose again in the 1980s (Rojstaczer 68).…