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Written by:
Sean B
Date added:
February 10, 2015
Level:
University
Grade:
A
No of pages / words:
2 / 512
Was viewed:
7944 times
Rating of current essay:
Essay content:
This can occur when the economic conditions are good indicated by high employment numbers, corporate profitability and easy credit.
The other cause for inflation could be because of a artificial forced increase in wage and raw materials.
Importance of inflation
Though popularly referred to and conceived as undesirable, inflation has a positive side as well...
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As the cost of construction (wages and materials used) goes up in an inflationary cycle, a house bought using the money borrowed from bank at an interest rate lower than a inflation rate is a money making opportunity.
o Investing in commodities can also be gainful.
• Social effect due to rise in salaries and wages...
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