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Inflation consequently leads to sharp rise in prices which in turn leads to the devaluation of money and prices rise. Also imports decrease and exports increase due to the devaluation of the local currency as compared to dollar and investing in financial institutions also decreases.
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What are the disadvantages of Inflation?
Inflation is the decreased value of money. if inflation goes up it means that the prices of goods also go up. this may lead to workers demanding higher wages and result in less profit for the business. also means people will not have the the same amount of money to spend and this could lead to a decrease in sales.(less profit)
Can to much economic growth lead to inflation?
No. They are not functions of one another.
How did financing the war lead to inflation for the Americans?
It lead to inflation for the Americans because, as their army grew, they needed more supplies for the soldiers, and the price on weapons went up. You could say there was a tax put on the weapons.
Can inflation lead to lower interest rates and higher stock prices?
False
Would lead to an increase in the inflation rate?
Rapidly rising production costs
How did financing the war lead to inflation?
What war?
What are the disadvantages of Inflation?
Inflation is the decreased value of money. if inflation goes up it means that the prices of goods also go up. this may lead to workers demanding higher wages and result in less profit for the business. also means people will not have the the same amount of money to spend and this could lead to a decrease in sales.(less profit)
Will inflation lead to change in demand?
Will inflation lead to change in demand? Inflation is defined as the rise of prices in goods and services in a society. Therefore inflation and demand are strongly depended on each other. Supposedly the inflation grows over a period of time, the demands would effect the different levels in society by a equivalent decrease and vice versa.
Incorrect tire inflation will adversely affect?
Incorrect tire inflation can affect several things. It can compromise handling, lead to premature tire wear, reduce fuel economy, and may cause damage to the drive train.
Can inflation and employment happen at the same time?
A rise in unemployment will lead to a fall in inflation...this is best explained by the philips curve
Can to much economic growth lead to inflation?
No. They are not functions of one another.
How did financing the war lead to inflation for the Americans?
It lead to inflation for the Americans because, as their army grew, they needed more supplies for the soldiers, and the price on weapons went up. You could say there was a tax put on the weapons.
What would lead an increase to the inflation rate?
Rapidly rising production costs
What would lead an increase in the inflation rate?
Rapidly rising production costs
Can inflation lead to lower interest rates and higher stock prices?
False
What would lead to an increase inflation rate?
Rapidly rising production costs
Would lead to an increase in the inflation rate?
Rapidly rising production costs
