When the inflation rate falls (but remains positive), this is known as disinflation. Conversely, if the inflation rate becomes negative, that means that prices are falling. This is known as deflation, which can have negative effects on an economy. Because buying power increases over time, ...
鈥Corgel, John BCorgel, J. B. (2001/2002). Focus on hospitality issues: When hotel revenues dive, what happens to NOIs & property prices? Real Estate Issues, 26(4), 71-74.
What happens to demand when price increases?Supply and Demand:Supply and demand are negotiated in a free market system by prices which signal to suppliers and consumers what each side is willing to do. When prices increase, they drive an increase in supply as the good or service now can ...
Look, here’s what happens: consumers – anticipating further price drops – tend to delay purchases, which dampens already weak consumption. Businesses, in turn, typically lower production and investment because of uncertain demand. What’s more, those falling prices generally lead to lower ...
What Happens When You Don’t File Your Taxes? Some people file their taxes but don’t pay. Others don’t pay, and they don’t even file. Morris Armstrong, an enrolled agent in Cheshire, Connecticut, who specializes in representing taxpayers before the IRS and is a fellow of th...
I used to rock climb, and it was on the wall that I realized what an important emotion fear is. On the one hand, you can’t let fear take over because once that happens you either never get off the ground at all — or if you manage to take a few first steps, you soon lose al...
Inflation isn’t always the villain in our economic story. Sometimes, it’s a tool used by policymakers to stimulate economic growth. When the economy slows down, a moderate level of inflation can encourage spending. Here’s why: if prices are expected to rise, people are more likely to bu...
National Geographic photographer Brian Skerry has been diving in the Gulf of Maine for more than 40 years. After learning these waters were a harbinger of climate change, he set out to document the rapid shift and its ripple effects.
What happens when you only make your credit card's minimum payment? It's important to make at least the minimum payment so your account stays current and you don't incur late fees, penalty APRs or hurt your credit. Even if you dutifully make your minimum payment, it's not ideal to car...
Below are a few scenarios that illustrate how dollar-cost averaging works. Scenario 1: Lump-sum purchase First, let’s see what happens with a $10,000 lump-sum purchase of ABCD stock at $50, netting 200 shares. Let’s assume the stock reaches the following prices when you want to sell...