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Why is high inflation a bad thing?

User Acidernt
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Answer: High inflation means prices are raised. Because businesses are forced to raise prices, banks raise interest rates to maintain a good profit margin. Higher rated results in marginal businesses failing. This increases unemployment and affects the entire economy system as a whole.

User Vyacheslav Shylkin
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2 votes

Answer:

because High inflation puts pressure on a government to increase the value of the state pension and unemployment benefits and other welfare payments as the cost of living climbs higher.

Step-by-step explanation:

User Kafkaesque
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