AB 204 Week 7 Discussion 2 | Assignment Help | Purdue Global

AB 204 Week 7 Discussion 2 | Assignment Help | Purdue Global 

Unit 7 Discussion Topic 2

 

 

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In economics, inflation is considered as a tax. There are also various costs of inflation.

a.    What is the inflation tax, and how might it explain the creation of inflation by a central bank? Explain how inflation affects savings and investment.

b.    Inflation distorts relative prices. What does this mean and why does it impose a cost on the society?

 

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