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Outcomes Of Economic Inflation

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Discuss the impact that increasing inflation will have on your life.

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The answer to this problem explains the harmful effects of price increases. The references related to the answer are also included.

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The impact that inflation will have on my life will be that my savings and investments will lose value. The money income from my savings will remain the same but the money value of my expenses will go up. Not only that when I receive my principal amounts from my savings account, term deposits, or other investments, the value of the money will be lower than what I had invested. Also, I find that my salary does not increase in proportion to inflation. The effect is that my ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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