suppose you have $5,000 in savings when the price level index is 100. instructions: round your responses to the nearest whole number. a. what is the real value of your savings if the price level increases by 10 percent for the year? $ b. what is the real value of your savings if, instead, the price level declines by 5 percent for the year?

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Answer 1

The real value of savings if the inflation pushes price level by 10 percent is $4,545.45 and The real value of savings if the price level declines by 5 percent is $5,263.157.

The real value of savings if the inflation pushes price level by 10 percent is given by:

= Amount of savings when the price level index is 100 / (1 + inflation

   rate)

= 5000/(1+0.1)

= 4,545.45

The real value of savings if the price level declines by 10 percent is given by:

= Amount of savings when the price level index is 100 / (1 - inflation rate)

= 5000/1 - 0.05

= 5,263.157

The term "inflation" refers to an increase in prices, which over time results in a loss of buying power. The average price rise of a basket of chosen goods and services over time can be used to determine the pace at which buying power is decreasing. A unit of money now essentially has less purchasing power than it had in earlier times due to the increase in prices, which is frequently stated as a percentage. Deflation, on the other hand, is characterized by a drop in prices and a rise in buying power.

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Related Questions

tavist allergy pills sell for $25 a box. steve, brian, and toby are willing to pay $33, $27, and $19, respectively, for a box of tavist. what is the total consumer surplus for steve, brian, and toby?

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The total consumer surplus for steve, brian, and toby is $10.

What is consumer?
A consumer is a person or a group that is not directly involved in entrepreneurial or business activities and who intends to order as well as uses purchased goods, products, as well as services primarily for personal, social, family, or household needs. The phrase is most frequently used to describe someone who makes purchases for their own use. Any individual or group who makes final use of a good or service is referred to as a consumer. Here are a few instances: a client who spends money having their hair styled and cut by a hairstylist. a business that purchases a printer for business use.

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according to karl marx, in a capitalist economy, what type of alienation is a worker experiencing when the worker is forced to work for someone else and makes money for the owner of the workplace?

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According to alienation, the worker is forced to work for someone else and makes money.

What is the theory of alienation ?

The method of making a worker feel alien to the results of their own effort. One may put their subjectivity into an object and even take pleasure in the fact that someone else enjoys their invention, therefore creating commodities need not result in alienation and can even be quite gratifying. The proletariat works in order to live, to obtain the very means of life, which he can only achieve by selling his labor to a capitalist for a wage (as if his labor were itself a property that can be purchased). In capitalism, the worker is exploited in this way: he does not work to create a product that he then sells to a real person.

Because the worker no longer owns the product, the worker feels alienated from it. Instead, the product now belongs to the capitalist, who bought the proletariat's labor force in return for exclusive control over the proletariat's goods and any profit generated by their sale.

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which of the terms or phrases listed below is more associated with financial statements prepared in accordance with u.s. gaap than with international financial reporting standards?

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Accumulated other comprehensive income is  the terms or phrases which   is more associated with financial statements prepared in accordance with U.S. GAAP than with International Financial Reporting Standards.

What's IFRS and its purpose?

The International Financial Reporting norms( IFRS) are a set of account rules for public companies with the thing of making company financial statements harmonious, transparent, and fluently similar around the world. This helps for auditing, duty purposes, and investing.

What's IFRS perpetration?

Enforcing IFRS has an impact on all aspects of a company, including financial reporting systems, internal controls, levies, storeroom, operation compensation, cash operation, and legal, among others. It requires a metamorphosis that involves workers, processes, and systems.

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dake corporation's relevant range of activity is 3,100 units to 6,500 units. when it produces and sells 4,800 units, its average costs per unit are as follows: average cost per unit direct materials $ 7.00 direct labor $ 3.10 variable manufacturing overhead $ 1.75 fixed manufacturing overhead $ 3.00 fixed selling expense $ 1.05 fixed administrative expense $ 0.75 sales commissions $ 0.85 variable administrative expense $ 0.75 for financial reporting purposes, the total amount of product costs incurred to make 4,800 units is closest to:

Answers

The total production cost incurred if 6,800 units are produced is $ 33603.1

The manufacturing overhead is an indirect cost. It is allocated based on a predetermined rate. We will take into account only the direct materials and direct labor.

For 4,800 units:

Total direct manufacturing cost= 4,800 × ( $ 7.00+ $ 3.10)

Total direct manufacturing cost= $ 33603.1

What is total manufacturing cost?

Total manufacturing cost, or simply the cost of producing the things that will be sold to customers, is the sum of all the money that a firm spends on its manufacturing operations. As implied by the name, it considers every single expenditure.

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which entity is responsible for monitoring the appraisal foundation to ensure it is properly fulfilling its responsibilities under title xi of firrea?

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The Foundation's work is monitored and evaluated by the Appraisal Subcommittee (ASC) of the Federal Financial Institutions Examination Council.

Which Appraisal Foundation Board do you belong to?

The Board of Trustees (BOT) of the Appraisal Foundation is in charge of the organization's governance. The Board of Trustees (BOT) appoints members, finances, and oversees two distinct Boards: the Appraisal Standards Board and the Appraiser Qualifications Board.

Who keeps an eye on the appraisal base?

The Evaluation Subcommittee (ASC) of the Government Monetary Establishments Assessment Gathering screens and surveys crafted by The Establishment.

Who is in charge of appraisals?

When it comes to the creation and implementation of performance reviews, the department of human resources plays a crucial role. In point of fact, the HR team serves as a mediator between the employee and the functional heads or reviewing authorities. The human resources team is in charge of making sure the appraisal process goes off without a hitch.

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last year janet purchased a $1,000 face value corporate bond with a 7% annual coupon rate and a 30-year maturity. at the time of the purchase, it had an expected yield to maturity of 7.03%. if janet sold the bond today for $1,059.61, what rate of return would she have earned for the past year? do not round intermediate calculations. round your answer to two decimal places.

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Rate of return = Interest + (Sale price- Purchase Price)  / Purchase price

Rate of return = 1000 * 7% + (940.74- 1000)  / 1000

Rate of return = (70 - 59.26)  / 1000

Rate of return = 10.74  / 1000

Rate of return = 1.074%

Let's assume you personally have a percentage that commenced at $100 in cost and rose to $110 in price. Now, you want to locate its fee of return. A fee of return is generally expressed as a percent of the funding's initial cost. So, in case you had been to sell your share, this funding would have a 10% price of going back.

The simple charge of going back is the incremental amount of internet earnings expected from a potential funding possibility, divided with the aid of the investment in it.

A bad Rate of return is a lack of the main investment for a specific period of time. The bad may additionally develop into an effective in the next period, or the one after that. A terrible fee for going back is a paper loss unless the funding is cashed in.

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the goal of health insurance is to: a. collect sufficient premiums to cover all possible losses. b. equalize the availability of medical care across population groups. c. redistribute income from the sick to the healthy. d. spread risk over a large group of people.

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The goal of health insurance is to collect sufficient premiums to cover all possible losses spread risk over a large group of people. The sum that a patient is required to pay an insurance company in premiums.

The risk of a person needing medical care might be partially or completely covered by health insurance, often known as medical insurance. Risk is shared by many people, just like with other types of health insurance. An insurer can design a routine financial structure, like a monthly premium, by assessing the entire risk of health risk and health system spending over the risk pool.

A premium is a price that exists above a certain kind of basic value, and such assets or items are said to be trading at a premium. Increased demand, a constrained supply, or expectations of rising value in the future can all cause assets to trade at a premium.

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the marketing team for the charity american harvest, a national food bank program, wants to know how much it costs to attract a new donor to visit its website and complete a donation. american harvest will most likely use the metric of .

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The marketing team for the charity American harvest, a national food bank program, wants to know how much it costs to attract a new donor to visit its website and complete a donation. American harvest will most likely use the metric of cost-per-order.

A charity must have one or extra of the functions that have been described in law. those encompass things like: relieving poverty, training, faith, protecting the environment, animal welfare, human rights and community development.

Examples of these functions encompass running an animal refuge, a volunteer fireplace branch, a facility for care of the elderly or a clinic. There are a few functions that are not taken into consideration charitable including groups which might be created for political purposes and companies created to sell sports activities.

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Any costs incurred to get the merchandise into a condition and location ready for sale should be debited to ______.

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Any costs incurred to get the merchandise into a condition and location ready for sale should be debited to Inventory.

Any activity that helps a product be sold to a retail customer is considered merchandising. Retail in-store merchandising is the practice of exhibiting objects that are for sale in a way that inspires customers to buy additional items or products. Visual display merchandising in retail refers to the practice of selling goods by influencing consumer behavior through product selection, display, pricing, and packaging. Disciplines and discounts, the actual presentation of products and displays, and judgments regarding which products should be shown to which customers at what time are all included in this.

Understanding the standard dating notation for the terms of payment on an invoice is made easier by merchandise. Codified discounting addresses markup and markdown issues in pricing.

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fegley, incorporated, has an issue of preferred stock outstanding that pays a $3.80 dividend every year, in perpetuity. if this issue currently sells for $93 per share, what is the required return?

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The required return of the preferred stock issued by Fegley incorporated is  4.086%.

What is the required return?

A stock is an investment that gives the holder ownership rights in a public company. A preferred stock is a class of stock that is used to raise capital for public firms. A preferred stock  holder receives a fixed amount of dividend.

Required return is the least amount of profit that investors are expecting from their investment.

The formula that can be used to determine the price of the stock is:

P = D / r

r = D / P

Where:

r  = required return D = dividend P =price of the stock

3.80 / $93 = 0.04086 = 4.086%

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Wallace has decided that he wants to move on from his entrepreneurial business and take his financial profits from his hard work. This is an example of​ ________.

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Wallace has decided that he wants to move on from his entrepreneurial business and take his financial profits from his hard work. This is an example of​ harvesting.

What is financial profit?
Profit is defined as the financial benefit realised when the revenue generated by an economic activity exceeds the expenditures, costs, and taxes associated with the activity in question. Profits are returned to business owners, who can choose to pocket the money, disseminate it to shareholders as dividends, or invest money it back into the company. The amount of money a company makes after deducting all expenses. Whether it's a peach iced tea stand or a publicly traded multinational corporation, the primary goal of any company is to make money, so business performance is dependent on profitability in all of its forms.

Some analysts are concerned with top-line profitability, while others are concerned with profit before taxes as well as other expenses. Others are solely concerned with profit once all expenses have been removed.

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apple, which controls over 75 percent of digital music sales, was able to dictate song pricing for years, despite the tremendous protests of the record labels. this implies that:

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If apple, which controls over 75 percent of digital music sales, was able to dictate song pricing for years, this implies that: Companies with strong network effects tend to enjoy substantial bargaining power over partners.

What is bargaining power?

Bargaining power can be defined as the way in which a company tend to have the ability to negotiate than another company in which the company with  the best negotiation power  tend to win the deal in which  both companies are negotiating on.

This scenario best illustrate bargaining power which is what makes it possible for apple to have control over seventy five percent of digital music sales.

Therefore we can conclude that apple have strong bargaining power over others companies.

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a middle-ground ad strategy between globally standardized and entirely local programs is the blank approach, in which the home office and foreign subsidiary agree on marketing objectives, after which each subsidiary puts together a tentative advertising campaign. multiple choice question. regional personal selling semi-universal programmed-management

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The programmed management approach (advertising) is a middle-ground ad strategy between globally standardized and entirely local programs is the blank approach, in which the home office and foreign subsidiary agree on marketing objectives.

So, option D is correct.

Advertising approach that straddles the line between internationally standardized and wholly local initiatives. This strategy allows for flexibility in reacting to various market situations while giving the home office an opportunity to standardize those ad elements that can be. A business is utilizing a global standardization approach if it doesn't alter its product or marketing message for international markets.

When discussing only piece prices, as is frequently the case with commodities, it is challenging to reach a middle ground. Taking total cost into account, on the other hand, may assist you in finding a happy medium. Piece pricing is only one aspect of the discussions that must be taken into account while adopting this strategy.

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The money multiplier is equal to the _______________ in the economy divided by the original _________________.

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The money multiplier is equal to the total money in the economy divided by the original quantity of money

What is Multiplier for money?

A money multiplier is one of several closely related ratios of commercial bank money to central bank money in a fractional reserve banking system, according to monetary economics. It has to do with how much money from the central bank can be created in the commercial banks up to a particular point.

Therefore, Loans are how banks make money. To increase interest earnings, a bank lends or invests its excess reserves. The money supply grows by more than one dollar for every $1 rise in the monetary base. The money multiplier is the expansion of the money supply.

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a real estate agent has leased 10 rooms in a resort area for $100,000 for the summer season. she hopes to rent these rooms and generate profit for her business. what will the fixed costs be for the real estate agent if only 6 rooms are occupied because of excessive rains?

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The fixed cost for the real estate agent if only 6 rooms are occupied because of excessive rain is $100,000.

Working as an estate agent is likewise an opportunity to build a successful profession, from which you can earn an earnings-based totally on your performance. it's miles, consequently, a developing market and you will maximum possibly see an effective go back in your efforts.

Marketplace and sell homes for sale. Represent the dealers in negotiation by searching for what you offer. Reveal income as they continue and liaise with all involved parties including mortgage agents, solicitors, surveyors, and different property retailers. Recommend clients and assist shoppers to determine what they need to buy.

However, property sellers do not need to go to university. However, having a degree in actual estate will show your future employers and customers that you have gone thru expert schooling and training to cope with properties.

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a firm recorded the receipt of cash on account from a creditor as a debit to cash and a credit to accounts payable. the error was discovered after the data posted. the correcting entry should contain:

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In the situation where there was an accounting error in recording a financial transaction as given above, the correcting journal entry should contain a debit to accounts payable and a credit to accounts receivable.

What is the significance of a journal entry?

A journal entry can be referred to or considered as the systematic of recording and maintaining the financial transactions that take place in an organization during an accounting period. It has a debit and a credit effect.

A correcting journal entry rectifies the errors made in the recording of actual journal entries. For the above situation, the correcting entry where accounts payable are debited and receivables are credited would rectify the transaction.

Therefore, the significance regarding a journal entry has been aforementioned.

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if, over time, wages and salaries on average rise at least as fast as inflation, should people have to worry about how inflation affects incomes? will indexing of wages and salaries to inflation then take care of the problem. are there other factors that will contribute to whether or not the problem is solved?

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The impact of inflation People worry about their income during a period of hyperinflation because their real income will decline during this time. Effects on Income and Employment: Due to increased production, inflation tends to raise the total monetary income of the community as a whole.

Similar to how output increases, employment also rises as a result. The expansion of the money supply is what drives inflation in an economy. With more money competing for the same amount of commodities as before, prices rise as a result of greater demand.

Wide-ranging effects on output, wealth distribution, and the economy as a whole result from this decline in currency value and increase in the overall price level. These effects may be favorable or unfavorable, and they may differ depending on the group of people affected.

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9. if 116,500 pounds of raw materials are needed to meet production in august, what is the estimated raw materials inventory balance at the end of july?

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Inventory Balance denotes the monetary amount of the Inventory as of the measurement date, based on the Seller's or one or more of its Affiliates' standard costs as described above for the purposes of such measurement.

Explain about the inventory balance?

On a company's balance sheet, inventory is listed as a current asset and acts as a stopgap between order fulfilment and production. When an item in inventory is sold, its carrying cost is transferred to the income statement's cost of goods sold (COGS) category.

When accounting for inventory through financial reporting, proper inventory valuation is crucial. Inventory inconsistencies will have an influence on financial statements like balance sheets, income statements, and statements of retained earnings if inventory is not valued appropriately.

All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory. Example: Only the newspaper will be regarded as inventory if a newspaper vendor utilizes a vehicle to distribute newspapers to clients. The car will be considered an asset.

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otb mc qu. 6-39 (algo) assume the following information for a... assume the following information for a company that produced 10,000 units and sold 8,000 units during its first year of operations and produced 8,000 units and sold 10,000 units during its second year of operations: per unit per year selling price $ 200 direct materials $ 78 direct labor $ 50 variable manufacturing overhead $ 11 sales commission $ 8 fixed manufacturing overhead $ 300,000 using absorption costing, what is the cost of goods sold for the second year of operations? multiple choice

Answers

Using absorption costing, the cost of goods sold for the second year of the company's operations is A. $1,690,000.

What is absorption costing?

Under absorption costing, the cost of goods sold includes the variable and fixed manufacturing costs.  Other expenses are treated as period costs and deducted from the gross profit.

The cost of goods sold can be computed as the costs of beginning inventory and production minus the cost of ending inventory.

However, since the company's per-unit sales price and costs were the same for the first and second years, and there was no ending inventory in the second year, the cost of goods sold becomes a straightforward calculation as below.

                              First Year  Second Year

Beginning inventory   0               2,000

Production units =   10,000         8,000

Sales units                8,000        10,000

Ending inventory      2,000             0

                                                  Per Unit        Total

Selling price                                 $200    $2,000,000

Direct materials                              $78

Direct labor                                    $50

Variable manufacturing overhead $11

Total variable cost                       $139     $1,390,000

Fixed manufacturing overhead                 $300,000

Total manufacturing cost                        $1,690,000

Sales commission                            $8          80,000

Cost of goods sold = $1,690,000 (10,000 x $139 + $300,000)

Thus, the absorption cost of goods sold in year two is Option A.

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Question Completion with Answer Options:

A. $1,690,000

B. $1,390,000

C. $1,770,000

D. $1,310,000

missy is assessing global entry strategies for her organic yogurt shops. she does not want to take a lot of risk and is willing to limit her control of international stores. missy will most likely use a(n) blank strategy.

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Because starting a new business in a foreign country is expensive and time-consuming, greenfield investments are considered to be very risky. A company might need to hire consultants or business partners to help it gain information and experience about the current market.

Missy is considering international entry methods for her healthy yogurt stores. She is willing to limit her authority over foreign stores since she does not want to take too many risks. Missy will probably employ a (blank) strategy.

The direct sale of goods and/or services to another nation is known as exporting. It is possibly the least risky and most well-known way to join a foreign market.

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The decentralized public ledgering system called ________ is used to record and manage transactions in traditional sectors like shipping, real estate, voting, and stock trading.

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Transactions in established industries including shipping, real estate, voting, and stock trading are tracked and managed using the decentralized public ledger technology known as Blockchain.

What steps constitute a public, decentralized ledgering system?

The process of moving power and responsibility from a centralized organization to a decentralized structure is known as decentralization. Delegating the management of resources available in an application allows for the provision of a greater and more equitable service.

Without a national automated clearing house, payments can be validated using a distributed ledger known as a blockchain. Automatic updates, attacks, and deception are very difficult with this kind of data storage.

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when a british bank accepts a deposit in pounds sterling, it must set aside a fraction of that money to be kept in an account at the bank of england. all industrialized countries operate with this type of blank requirement. multiple choice question. reserve income capital withholding

Answers

Reserve requirements withholding capital income reserve.

Capital is a very important thing in a company or business. Without capital, the business cannot move as it should. Capital is needed in various business scales, ranging from large-scale or small-scale businesses.

There are several types of capital separated by category, namely:

Types of Capital Based on Source, types of capital based on sources are divided into two, namely external capital and internal capitalTypes of Capital Based on the Owner, based on its function, capital is divided into two, namely social capital and individual capital.Types of Capital Based on Its Form, capital is also divided based on its form or form, namely abstract capital and concrete capital.Capital based on its nature, based on its nature, the type of capital is divided into two types, namely fixed capital and current capital.

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factors of production are foundational to a business achieving their objectives. if a business identifies the need to acquire new machinery to increase efficiency, on which of the four fundamental resources should they focus?

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The four fundamental resources should they focus natural resources, capital, human resources, and entrepreneurship.

The required details about Factors of production is mentioned in below paragraph.

Factors of production are the assets that serve as the economic backbone and are utilized by individuals to create goods and services. Land, labor, capital, and entrepreneurship are the four types of production elements that economics differentiate between. According to conventional economics, the four main factors of production are land, which refers to the actual area and natural resources, labor, which refers to the actual workers, capital, which refers to the actual funds and machinery, and entrepreneurship, which refers to the actual concepts and driving forces. All production forces contribute to economic progress. No product can be made without the basic components (land). Such resources cannot be gathered, transformed, or processed without work (labor).

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you are considering a project with an initial cost of $4,300. what is the payback period for this project if the cash inflows are $550, $970, $2,600, and $500 a year for years 1 to 4, respectively? a) 2.04 years b) 2.36 years c) 2.89 years d) 3.04 years e) 3.36 years

Answers

For the given initial investment and cash inflows, the payback period for the project is 3.36 years (option e)

Payback period is the period where the initial investment is paid back by the cash inflows.

Data from the problem:

Initial investment = $4,300

Cash inflows:

Year   Cash inflows   Accumulated cash inflows

1            $550                   $550

2           $970                  $1520

3        $2,600                  $4120

4           $500                  $4620

Notice that at the end of the 3rd year, the accumulated cash inflows is $4120, while the initial investment is $4,300. Hence, we need $4,300 - $4,120 = $180 more to make the accumulated cash inflows equal to the initial investment.

Since, the cash inflows at the 4th year is $500, it is expected that $180 will be obtained within:

180/500 = 0.36 year

Therefore, total period = 3 years + 0.36 year = 3.36 years

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clancy purchases an old office building and wants to obtain commercial property insurance. the building is at an increased risk of fire damage because the electrical work is outdated. in a weak economy, the insurance company charges him a lower premium than usual and agrees to take the risk. this pricing strategy is called

Answers

This situation uses the strategy of premium underwriting as it reduces the premium in case of risky situations as the insurer is able to take the risk due to less premium as assurance.

What is Cashflow Underwriting?


An insurer that uses cash flow underwriting is making a wager that the losses from the numerous policies it writes will take a while to materialize. A cash flow underwriting strategy seeks to produce significant investment money from the increased business brought on by lower pricing by the individuals to avoid huge amounts of premium

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true or false: in wto rules, the escape clause allows for the imposition of restrictions on unfairly traded imports that cause or threaten harm to domestic industry.

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this is true
hope this helped!! :))

14-9 if a firm goes from zero debt to successively higher levels of debt, why would you expect its stock price to rise first, then hit a peak, and then begin to decline?

Answers

The tax advantages of debt increase linearly, increasing the firm's worth and stock price with time.

Is a greater or lower stock price preferable?A public company's stock share price, which generally indicates the company's overall financial health, is very important. Generally speaking, a company's prospects get better as its stock price rises.The smallest unit of stock in a firm is called a share. Therefore, the appropriate word to employ when allocating stock and referring to certain attributes is shares. In a technical sense, shares correspond to stock units.The most accurate way to determine a security's present value is to look at its current price, which is the most recent selling price of any stock, currency, good, or precious metal that is traded on an exchange.

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which one of the following insurance policy provisions requires the insured to pay for part of the loss if the property is not insured for the specified percentage of replacement value? group of answer choices personal property floater an endorsement coinsurance clause umbrella coverage assigned risk clause

Answers

Coinsurance clauses in insurance policies require the insured to cover a portion of the loss if the property is not covered for the required percentage of replacement value.

Coinsurance clause: what is it?

Coinsurance is a term used in insurance contracts by insurance providers for building-related property insurance policies. This provision guarantees that policyholders insure their assets for a reasonable amount and that the insurer is paid a reasonable premium for the risk.

The common way to express coinsurance is as a percentage. The majority of coinsurance clauses demand that policyholders insure a property for 80, 90, or 100% of its actual value.

For instance, a $1,000,000 replacement value building with a 90% coinsurance clause must have a minimum of $900,000 in insurance coverage. An 80% coinsurance clause on the same building necessitates insurance coverage of at least $800,000.

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marigold corp. recorded the following cash transactions for the year: paid $187000 for salaries. paid $84500 to purchase office equipment. paid $19600 for utilities. paid $8000 in dividends. collected $365000 from customers. what was marigold's net cash provided by operating activities? o $158400 o $73900 o$178000 o $150400

Answers

Based on the recorded cash transactions, the net cash from operating activities is $150400

Operating cash flow can be calculated as total cash received from sales minus total cash paid for operating expenses.

Activities that included in operating cash flows:

- salaries

- payment to vendors/supplies

- interest income or dividend received

- paid dividend and paid interest

- income tax paid

- cash from customers

Data from the problem:

Cash from customers = $365000

Salaries paid = $187000

Utilities paid =  $19600

Dividend paid =  $8000

Purchasing office equipment is not included in operating expenses.

Hence,

Net cash from operating activities = $365000 - ($187000 + $19600 + $8000) = $150400

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the rate of inflation in zimbabwe rose in 2018 from 10.6% to 577.21% in 2020. what was the positive effect of this unexpected inflation on the residents of the country?

Answers

The unexpected inflation in Zimbabwe from 2018 to 2020 had a positive effect on the residents of the country which was making fixed rate loans cheaper.

What is a positive effect of unexpected inflation?

When there is unexpected inflation, it means that the prices of goods and services are rising faster than was anticipated by economists and analysts. This means that this rate of inflation was not included in the determination of fixed rates of interests on certain loans.

The residents of Zimbabwe when the inflation rose from 10.6% in 2018 to 577.21% in 202 would therefore get the positive benefit of paying less interest in real terms if they had fixed rate loans.

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