A few days ago
Cassie

Econ Questions

Explain if he following people will gain or lose during deflation.

1.A tenant who has entered into a fixed-rent contract to rent an apartment for two years.
2.A businessman who has borrowed money from a bank at a fixed interest rate.

請清楚地解釋佢地係lose/gain.thanks

Top 3 Answers
A few days ago
小強
迫於無奈地揀普通,其實我覺得係正面
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A few days ago
R Ho
CPI = Value of base year’s quantities at current yr prices/base yr prices. It is represented by an index (value) not percentage.

Assume the previous CPI = 100. Now the only thing changed is the price of food by 60%. Thus, its impact to the CPI is an increase of 60% * 25.5%, i.e., 15.3%.

2007-09-15 01:30:55 補充:
Also, the new CPI would now be 115.3.

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