The Money Farm Team

How Does Inflation Affect Return On Investment?

This goal is jeopardized by inflation, because investment returns must keep pace with inflation in order to enhance real purchasing power. When adjusted for inflation, an investment that returns 2% before inflation in a 3% inflation environment will actually produce a negative return (1%). Is inflation a factor in returns? Savings are enticed by high […]

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Does GDP Include Imports?

All private and public consumption, government outlays, investments, additions to private inventories, paid-in building expenses, and the foreign balance of trade are all factored into a country’s GDP calculation. (The value of exports is added to the value of imports, and the value of imports is deducted.) Introduction The entire market value, expressed in dollars, […]

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