One of the functions of money is as a store of value. How does inflation affect money's ability to store value? (3-6 sentences. 2.0 points) Inflation can decrease the value of money overtime. Inflation is when the value of money goes down, so you can’t get as much for your money as you could in the past.
How does inflation affect money's ability to store value? (3-6 sentences. 2.0 points) When inflation happens it affects everyone because it lowers the common value of a dollar. Also makes the product cost more than it’s actually worth. Therefor our dollar will not stretch as far as it once did prior inflation.
(3-6 sentences. 2.0 points) Inflation affects the value of money by decreasing the value when prices for both goods and service rise. This ruins money’s ability to store and hold value as it ruins it’s worth. It’s destroys and reduces the current and future value of money. 5.
1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points) Make choices about how to spend money responsibly, plan for retirement. Because, I will need to know how to plan later on in life with my finances.
Assignment 1: Economic Basics (24.0 points) 1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points) Two skills that important with financial planning are, first is create a budget. It is vital in keeping your financial house in order.
In order to combat this deficit spending, taxes are increased to generate more revenue to pay off this spending. In response, consumers will spend less money and save more, thus causing a decrease in consumption and less money in the economy. Soon, there is a decrease in investment because products are not being sold. Prices drop, and the economy lowers into a recession.
With these factors taken into consideration, a decrease in consumer expenditure would be a direct causation to a lowering of both organisations activity. For example, due to recession unemployment will rise as the companies can’t afford to pay employees, and therefor people as a whole have less money to spend, and so donating to causes such as Oxfam would come more unlikely as there will be less money revolving them. This could cause a cut on their government funding as more money will need to be invested to government funding for those out of employment. With a low flow of money inward to the company it means they wont afford the expenditure necessary to fund projects for helping those, therefore lowering the activity of the charity. The same rule may apply to Arsenal FC.