Candidlion50
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Hey guys so I've recently started doing economics as my 3rd A level and I'm currently stuck on this 8 marker, so this is the question : "Analyse why consumers might bring forward or postpone spending and firms investment when there is hyper-inflation and deflation?" I was wondering if anybody could help me out a little.
Thanks
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Juno
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(Original post by Candidlion50)
Hey guys so I've recently started doing economics as my 3rd A level and I'm currently stuck on this 8 marker, so this is the question : "Analyse why consumers might bring forward or postpone spending and firms investment when there is hyper-inflation and deflation?" I was wondering if anybody could help me out a little.
Thanks
Define what hyperinflation means - prices go up a hell of a lot. Define what deflation means - prices go down. Then think why a change in prices might affect current and future behaviour. Are you going to buy the chocolate bar now when it costs £1, or would you wait until tomorrow when it might cost £2? How about if it could cost 50p tomorrow?
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