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Q.

Sir, please tell me about aboutinflation?

Asked by abhishek sharma, 25 Jan '09 06:42 pm
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Answers (2)

1.

INFLATION MEANS THERE IS MUCH MONEY WHICH COULD BUY ONLY LESS OF GOODS OR SERVICES. In economic terms too much money chasing too few goods.
Answered by venkatesaldevarajan, 25 Jan '09 07:09 pm

 
  
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2.

In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. The term "inflation" once referred to increases in the money supply (monetary inflation); however, economic debates about the relationship between money supply and price levels have led to its primary use today in describing price inflation. Inflation can also be described as a decline in the real value of moneya loss of purchasing power in the medium of exchange which is also the monetary unit of account. When the general price level rises, each unit of currency buys fewer goods and services. A chief measure of price inflation is the inflation rate, which is the percentage change in a price index over time.
Inflation can cause adverse effects on the economy. For example, uncertainty about future inflation may discourage investment and saving. High inflation may lead to shortages of goods if consumers begin hoarding out of concern that prices will i ...more
Answered by Rohit Vijaykumar Konnur, 25 Jan '09 07:07 pm

 
  
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