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Economical Effects Of Inflation
Author :
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Topic updated on 02/14/2019 07:35am
Inflation brings about various economic effects.
Decline in the real value of money has adverse effects on fixed income earners, depositors and creditors.
Variable income earners and debtors are benefited by inflation.
Real income can be calculated using the following formula:
Economic cost of inflation is the decline in efficiency of economic activities.
Monetary policies and monetary policy management can be used to control inflation.
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