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Mattius_
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when a price of $56.795 is rounded to $56.80 money is created... would you say this has a negligable impact upon our economy?
Originally posted by Mattius_
when a price of $56.795 is rounded to $56.80 money is created... would you say this has a negligable impact upon our economy?
Originally posted by Mattius_
no, there arent as many round ups as there are round downs... there are 4 decimals to round down to, there are 5 to round up to.
Inflation caused by rounding is a phenomenon where the prices of goods and services increase due to rounding up of prices. This can happen when businesses round up their prices to the nearest whole number or when the government rounds up taxes or fees.
Inflation caused by rounding can lead to an increase in the overall price level in the economy, making goods and services more expensive. This can decrease the purchasing power of consumers and lead to a decrease in consumer spending, which can slow down economic growth.
Yes, inflation caused by rounding is a common occurrence in many economies. It can happen due to various reasons, such as rounding up of prices by businesses, rounding up of taxes and fees by the government, and rounding up of interest rates by financial institutions.
Inflation caused by rounding can be controlled to some extent by implementing policies that aim to keep prices stable and prevent excessive rounding. This can include measures such as monitoring price changes, regulating pricing practices of businesses, and controlling inflation through monetary and fiscal policies.
Individuals can protect themselves from the effects of inflation caused by rounding by being aware of price changes and making informed purchasing decisions. They can also diversify their investments to minimize the impact of inflation on their savings. Additionally, individuals can advocate for better pricing practices and policies that aim to reduce inflation caused by rounding.