BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
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Political Situations
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Sociocultural Situations
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Technological Situations
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Detailed explanation-1: -The CPI represents changes in prices of all goods and services purchased for consumption by urban households. User fees (such as water and sewer service) and sales and excise taxes paid by the consumer are also included. Income taxes and investment items (like stocks, bonds, and life insurance) are not included.
Detailed explanation-2: -Based on speed, there are 4 different types of inflation – hyperinflation, galloping, walking, and creeping.
Detailed explanation-3: -Inflation occurs when prices of goods and services are rising while the purchasing power of the country is decreasing. There are generally three types of Inflation: demand-pull Inflation, cost-push Inflation, and built-in Inflation.
Detailed explanation-4: -Nominal Interest Rate It is the stated interest rate paid or earned to the lender or by investor. So, if as a borrower, you get a loan of $100 at a rate of 6%, you can expect to pay $6 in interest. The rate has been marked up to take account of inflation.