Sunday, May 15, 2016

Unit 5 Inflation is in the house!

April 11, 2016
Inflation 
  • Inflation- a general rise in price levels
  • deflation- a general decline in the price level
  • disinflation- reduction in the inflation rate from year to year
  • stagflation- unemployment and inflation increase at the same time


real interest rates= nominal-inflation rate
buying bonds helps you prevent high % rate. Increases money supply.

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