equal 3 percent but in fact, prices have risen by 5%. Describe how this unexpectedly high inflation would help or hurt these individuals? The US government A homeowner with a fixed-rate mortgage Union Worker in the second year of a fixed raise labor contract. A college that has invested some of it endowment in government bonds. Banks

Average inflation went up by 65.5% since the turn of the century while college tuition and fees soared by 175%. Why has the relative price of college increased so much compared to average inflation?

Indicate if someone would benefit or suffer from inflation.

Suppose that people expect inflation to equal 5 percent, but in fact, prices rise by 7 percent. Which of the following groups or individuals are hurt by this unexpectedly high inflation rate? Check all that apply.   The government   A union worker in the second year of a labor contract   A homeowner with a fixed-rate mortgage   A college that has invested some of its endowment in government bonds that are not indexed Treasury bonds

Examine the effects of inflation in attention to food and accommodation expenses.

The government is printing a lot of money due to the economic stimulus bills. Will this cause worrying levels of inflation?

Can the issuance of government securities reduce the expectation of inflation?

Explain the effects of inflation on various groups of people in the society.

Identifying costs of inflation

what impact does inflation have on the value of business ?