Consequences of Inflation

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  • Consequences of Inflation
    • Economy is less stable
      • Businesses are less confident to supply on loan
        • Less Capital
          • Less Economic Growth
    • 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

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