Vocabulary notes

beneficial - вигідний, що приносить доход

unfavourable (ant. favourable) - несприятливий

there is a school of thought, which argues that - існує думка, що...

and induces investment as firms seek to expand - і сприяє росту капіталовкладень, тому що фірми (підприємства) розширюються

in the short run - дуже швидко

incur costs, which are fixed for some period of time - несуть витрати, що протягом якогось періоду є незмінними

a further argument - ще один аргумент

to borrow heavily - брати в борг великі суми

repaying loans - виплата позик

to contend - наполягати, затверджувати

this viewpoint has gained in credence - ця точка зору одержала велике поширення

a major objective - головна мета

Assignments

1. Suggest the Ukrainian equivalents .

a steady rise in money profits produces favourable expectations; this cost will be falling in real terms; this viewpoint has gained in credence in government circles.

2. Replace the parts in italics by synonyms

a steady rise in money profits induces investment as firms seek to expand, rates are not considered to be ...; the conclusion must be drawn

3. Fill in the gaps with the words and expressions from the text

1. A steady rise in money profits produces __ and induces __ as firms seek to expand.

2. There is a __ argument that firms may be __ to borrow heavily in a period of inflation.

3. Many economists would __ that inflation is the fundamental __.

4. This viewpoint has __ in government circles over the last few years.

4. Find in the text English equivalents for the following

Стимулювати капіталовкладення; встановлювати ціну; брати в займ велику суму; наполягати, стверджувати; страждати від подібного рівня

Assignments to the whole text

1. Increase your vocabulary

a) Find in the text all word-combinations with the verb "to experience" and translate them. Think of your own examples with these combinations. What other word-combinations with this verb do you know? Give examples.

b) Find in the text the words expressing the English for:

"знижувати(сь)" and "підвищшувати(сь)"

"призвести" and "викликати".

Write out the word-combinations with them and use these in your own sentences. Give synonyms to each word-combination you found in the text.

What other words expressing the same meaning do you know?

2. Find English explanations or paraphrase

the economy is stretched; fiscal drag; state benefits; not index-linked wages; selling essential items; borrowing funds; a bout of inflation; wage-price spiral; a school of thought

3. Make a written translation of the paragraph beginning with "Businesses may be hit by..." ("Falling sales").

4. Draw the scheme to mentioned cases of the impact of inflation on businesses related in "Falling sales", "High interest rates" and "Higher costs". For example: saving rises - spending falls - sales fall.

5. Answer the questions

1. Give the definition of inflation. What can you add to it?

2. The extent and severity of inflation.

3. Types of inflation (short characteristics). Are there any others?

4. Demand-pull inflation. Name countries with this type of inflation.

5. Cost-push inflation. Name countries with this type of inflation

6. The impact of inflation on business (in brief): accounting and financial problems; interest rates. How can businesses influence the economic environment?

7. Do you believe in the advice to borrow heavily in a period of inflation? Give your reasons.

8. Can inflation be beneficial?

9. What other factors not mentioned in this unit can cause inflation?

10. What "cures" for inflation do you know and can suggest?