Suppose you got paid an extra $10.00 for every reference to soaring prices in the...
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Accounting
Suppose you got paid an extra $10.00 for every reference to soaring prices in the media between 2021 - present, would you consider this an increase in salary, a nagging (not lagging) indicator of higher cost of living or a combination of both? (a) Describe the scenario as best possible and include two financial decisions that you would make differently knowing there's some extra cash in hand. Explain the macro economic implications of your decisions. (b) Take a guess-estimate of your total extra earnings from 2021 to present, what % of your extra earnings would you say is ploughed right back to consumption. Further explain why you think this estimate is a desirable outcome. Describe whether it is day-to-day purchases or big ticket items that accounts for consumption. (c) if you manage to invest and/or save most of the extra earnings, how did consumer prices (*) affect your decision to invest and/or save from 01-21 to 10-22. Notes: (*) consumer prices rose to 7.7% as of Oct.'22. (b) this prompt is for discussion purposes only, please do not include any confidential information when discussing this prompt.
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