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If the current unemployment rate is 3.9%, would one expect the rate of inflation to increase...

If the current unemployment rate is 3.9%, would one expect the rate of inflation to increase or decrease? Explain your answer. Now you face a wonderful decision. Imagine that you just won a lottery jackpot of $100,000. If you expect inflation to accelerate, should you buy that home you’ve been thinking of now? What would you decide if the rate of inflation is negative

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With the inflation in play, the interest rates get to rise with which the economy falls which gets to fall in recession and also unemployment. Therefore if inflation falls, then economy grows generating employment. Therefore I anticipate inflation to fall. If expectation is that inflation increases, the value of money in future will fall and price of home rises. So it would be bought now. If rate of inflation is negative, the money would be used to buy home now as the price is less at this point of time.

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