Question: Define and fully explain inflation, and who does inflation hurt and who does it hurt the most?
Inflation: The Gov’testimate, (a good one) of the % change in the total market price of a weighted, adjusted common. Market basket of good/service, between two post time periods.
• They should have a budget.
• American spend 10% on fast food.
• Is this $62,000 will buy you after 1 year what you can buy today.
• You should change your % in what you spend.
C.D.L.A ‘s : Cost of living Adjustment
They keep you from hurt.
If you don’t have C.D.L.A ‘s you get full effect .
Bank is the bad thing they follow wellstreet.
Example: if you ask them for a loan $10,000 they well ask for $11,000.
They just want there interest rate to be high.
So they need your money.
They are ware about inflation.
A Businessman should higher his price.