Inflation
Inflation is frequently described as "too much money chasing too few goods." Is this a satisfactory definition?
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Inflation is a persistent rise in price level. Prices are derived by the interaction between demand and supply. Price rises when demand rises without any rise in supply OR supply falls without demand unchanged. When there is more money (demand) than what is available on sale (supply) we have inflation. Too few goods refers to low supply in comparison with high demand that is fuelled by too much money.
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Question: Some commentators have argued that the failure of the "Supercommittee" is good thing for the economy? Do you argree? Answer: Q : If households If households become more If households become more willing to hold less cash and more stocks or bonds, the
If households become more willing to hold less cash and more stocks or bonds, the
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