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Essay

Making Money From Inflation

Essay specific features

 

Issue:

Business

 

Written by:

Patricia S

 

Date added:

March 22, 2013

 

Level:

 

Grade:

A

 

No of pages / words:

5 / 1345

 

Was viewed:

1558 times

 

Rating of current essay:

good 66, average 0, bad 0 (total score: 5)
 
Essay content:

Inflation results when actual economic pressures and anticipation of future developments cause the demand for goods and services to exceed the supply available at existing prices or when available output is restricted by faltering productivity and marketplace constraints. Sustained price increases were historically directly linked to wars, poor harvests, political upheavals, or other unique events...
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It may even stimulate economic activity: The illusion of personal income growth beyond actual productivity may encourage consumption; housing investment may increase in anticipation of future price appreciation; business investment in plants and equipment may accelerate as prices rise more rapidly than costs; and personal, business, and government borrowers realize that loans will be repaid with money that has potentially less purchasing power...
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General issues of this essay:
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