Inflation
- Created by: Lottie
- Created on: 29-04-12 18:59
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- measures the annual rate of change of the general price level in the economy
- sustained increase in the average price level
INFLATION AND PRICE LEVEL
- When prices rise, the value of money falls
- inverse relationship between the p level and the internal purching power of money
- ppl can protect themselves against the effect of inflation by investing in financial asssets that give a rate of return at least equal to…
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