Consequences of Inflation
- Created by: Imogenbn99
- Created on: 22-11-15 12:39
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- Consequences of Inflation
- Economy is less stable
- Businesses are less confident to supply on loan
- Less Capital
- Less Economic Growth
- Less Capital
- Businesses are less confident to supply on loan
- Who loses out?
- The poor due to higher proportion of spending on necesities
- People on fixed incomes
- Businesses
- Savers
- Mild inflation is beneficial
- More demand = more supply to increase profits
- Deflation is damaging due to less demand =
- Less demand = less supply
- Less demand = more unemployment
- Economy is less stable
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