Economics Question:
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What is inflation?
Answers:
Answer #1It is when the price of everything starts going up. Often an outside stimulus can start a cycle of inflation.
The price of goods and services is going up because of an over supply of money. As the amount of money in wallets increases so does the temptation to increase prices, which increases costs “especially by banks and finance institutions”, They have the least to lose as they hike up interest rates to regain losses.
The price of goods and services is going up because of an over supply of money. As the amount of money in wallets increases so does the temptation to increase prices, which increases costs “especially by banks and finance institutions”, They have the least to lose as they hike up interest rates to regain losses.
Answer #2Persistent Rise in Price of goods and services over a time period in an economy is called Inflation.
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