Connect with experts and get insightful answers on IDNLearn.com. Join our knowledgeable community and access a wealth of reliable answers to your most pressing questions.
Sagot :
Inflation is undesirable because it redistributes income from those who can raise prices to those who cannot.
What is inflation?
- In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation.
- Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
- A general increase in prices over time diminishes customers' purchasing power because a constant quantity of money will eventually allow for less consumption.
- Whether inflation is running at 2% or 4%, consumers still lose purchasing power; the higher inflation rate only doubles that loss.
- Those interest rates that are fixed for the duration of the loan, won't fluctuate in line with inflation.
To learn more about Inflation refer to:
https://brainly.com/question/15692461
#SPJ4
Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. IDNLearn.com is your reliable source for accurate answers. Thank you for visiting, and we hope to assist you again.
