Walmart overall financial health slp bus 305module 4 Essay

Walmart overall financial health slp bus 305module 4 - Essay Example So it gives you a look ahead at what to expect in terms of interest rates (Woodruff). Inflation is another aspect that would affect the organization. When the prices of essential commodities like rice, wheat, cooking gas go up and people spend more money for the same goods and services then it is inflation. Essentially inflation indicates that the value of money is going down and it takes more money to buy the same basket of goods. This will definitely lead to losses by business organizations as people would not be ready to spend such huge amount for the goods sold unless it is really essential. 3. If the Federal Reserve acts upon lowering the inflation, then it would best do it by maintaining price stability. Price stability preserves the integrity and purchasing power of the money in the economy. When prices are stable, people can hold money for transactions and other purposes without having to worry that inflation will eat away at the real value of their money balances (Bernanke). If the Federal Reserve lowers inflation by way of maintaining price stability, then the people would not worry about the prices of the goods and so purchasing goods by the consumers would get into normal routine without the fear of the increasing prices. This would help the organization benefit and indeed affects the organization