Inflation is the state in which _____________.

Due to inflation the price of the commodities ___________.

In the market interest rate is 8.00% and the inflation rate is 9.50% the real interest rate is ____________ and the economy is in a state of _____________

A bag of groceries that cost Rs. 125 fifteen years ago now costs Rs. 225. If inflation is the only cause for increased prices, what is the approximate average annual rate of inflation?

An investor wants a real rate of return (without inflation) of 12% per year on an investment. The expected annual inflation rate for the next several years is expected to be 3.5%. What should the investor use as his interest rate in his investment analysis calculations?

How much life insurance should a person buy to ensure his family gets Rs. 50,000 per year in interest (actual effective interest)? The interest rate from the insurance company is expected to be 8% while the inflation rate is expected to be 3%.

Ram loaned Shyam Rs. 25,000 at 12% interest compounded annually. Shyam will repay the loan in 6 equal end-of-year payments. The estimated inflation rate during this period is 3%. After taking the estimated inflation rate into account, what approximate rate of return is Ram really receiving on the loan?

A developer purchases 1 acres of land zoned for commercial use for Rs. 40,000 and plans to sell it after 4 years. If he wants a 15% before-tax rate of return after taking the 3% annual inflation rate into account, the selling price should be approximately

You are considering the purchase of an annuity that will pay Rs. 25,000 per year for 20 years. You want to obtain a 5% rate of return on the annuity after considering the effects of an estimated 3% inflation per year. The amount you should be willing to pay to purchase the annuity is approximately

Following are believed to be causes for inflation except ________