Inflation:
A persistent, substantial
rise in the general
level of prices related to an increase in the
volume of money resulting in the loss of
value of currency.
(Dictionary.com)
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Excessive inflation
makes it impossible
for people to buy basic necessities of life
and they lose trust in their government.
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__Social
unrest
occurs.__
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The government
controls inflation by...
- Increasing interest
rates
- Raising
taxes
- Reducing government
expenditures__
The goal is to make
it harder for people
to borrow money they need to purchase
products and services.
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