Английский язык: Сборник текстов и упражнений. Бодргина Л.И - 81 стр.

      An alternative way that we can look at this type of inflation is to say that it
occurs when injections exceed withdrawals and the economy is already stretched
(i.e. little available labour or factory space) and there is little scope to increase
further its level of activity.
      Cost-push Inflation
      Alternatively, inflation can be of the cost-push variety. This takes place when
firms face increasing costs. This could be caused by an increase in wages owing to
trade union militancy, the rising costs of imported raw materials and components
or companies pushing up prices in order to improve their profit margins.

     Fill in the gaps with the words and expressions from the text.
     1. Inflation varies considerably in its __ and ___.
     2. Mild inflation may ___ few difficulties for business.
     3. Businesses would have experienced great difficulty in ___ and ___ their
production while __ for people to save would have been removed.
     4. Demand-pull inflation occurs when ____ for a nation’s goods and services
__ that nation’s ability to ___ these goods and services.
     5. An alternative way that we can look at this type of inflation is to say that it
occurs when injections ___ withdrawals.
     6. An increase in costs for firms, for example, can be caused by an increase in
wages ___ trade union militancy.




                                 UNIT 24
                            MONEY AND BANKING

     Money and its Functions.
     Although the crucial feature of money is its acceptance as the means of pay-
ment or medium of exchange, money has other functions. It serves as a standard of
value, a unit of account, a store of value and as a standard of deferred payment.
We discuss each of the functions of money in turn.
     The Medium of Exchange.
     Money, the medium of exchange, is used in one-half of almost all exchange.
Workers exchange labour services for money. People buy and sell goods in ex-
change for money. We accept money not to consume it directly but because it can
subsequently be used to buy things we do wish to consume. Money is the medium
through, which people exchange goods and services.
     To see that society benefits from a medium of exchange, imagine a barter
economy.
     A barter economy has no medium of exchange. Goods are traded directly or
swapped for other goods.


                                          81