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Money And Inflation - Paper

Money And Inflation


The nation's economic stability has many factors which amount to inflation.
Inflation may be caused by a number of problems, but there are some specific
examples which have direct control over which way the prices and spending sway.
Inflation simply means that the American dollar, in this case, is less valuable
on the foreign exchange market and the gold standard is moved to higher prices;
which simply means that more currency is needed to exchange for gold.

Any slight change in investments or a company's cost premium could change
the entire economy because of the domino effect acting on the rest of society.
For an example, flooding in a particular region of the country could ...

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the product for.

Profit margins can have a direct impact on the consumer. The more an item
cost, the less a consumer will want to purchase that particular good. Higher
profit margins may be able to balance a company's budget, but unless their
product is in very high demand, most people will want to buy the product. The
lack of people purchasing the item may cause the company to lose money and have
no alternative other than to lay off workers. People out of work means that
less consuming will take place, meaning that other businesses will hurt due to
the lack of sales, perhaps causing those other businesses to move up their own
profit margin, in turn creating the same cycle at a faster rate.

With businesses under, the unemployment rate would be phenomenal. People
would be seeking government assistance while the government itself is so far in
debt and tied up in credit. The government assistance would add to the already
huge problem of the federal government spending ...

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PAPER DETAILS
Added: 9/23/2007 02:24:40 PM
Category: Economics
Type: Free Paper
Words: 570
Pages: 3

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