business questions - answers to business questions
*Business questions>>>Investing Questions

Is Inflation good for Economy?

Question:
I am at fix that is inflation good for economy or not..I think if price wouldnt rise people wont invest .....I need help to get out of this trouble...Its imp because my friend said only with this strategies one should pour his money into the market..

Answer:
inflation mainly 2 type. 1. cost push 2. demand push
the first one is bad for economy and second one is better (demand push) as it shows increase in price of goods due to excess demand.
for the first one cost push due to increase in the cost of production (land , labor, capital) price of goods is increasing. so it does not push the demand just increase the price of the goods which in long term leads to depression
Related Questions
  • Is Inflation good for Economy?
  • How does trading pairs works when it comes to stocks?
  • about share market and what is demat ,share holdings ,techno share bse,nse?
  • You are given a large amount of money to invest. Now I know "large amount" is subjective, but for the sake of
  • If I put $100,000 in a savings account, can I get $2,000 every month?
  • if i want to sell some shares that ive brough from the stockmarket how can i be sure they will sell ?
  • Why is it that banks don't loan small amounts of money?
  • Certificate of deposit dividend rates -- paid how often?
  • if you won the lottery?
  • Cash Flow Streams Same Amounts but different NPV?
    • Categories
    Taxes Small Business Renting & Real Estate Personal Finance Other - Business & Finance Investing Insurance Credit Corporations Careers & Employment Advertising & Marketing
       

    business questions and business answers
    Loan,Banking and CreditFor personal non-commercial use only. All rights reserved.