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Social Studies

1 answer:

fenix001 [56]2 years ago

6 0

Answer:

Inflation occurs when an economy grows due to increased spending. When this happens, prices rise and the currency within the economy is worth less than it was before. The currency essentially won’t buy as much as it would before. When a currency is worth less, its exchange rate weakens when compared to other currencies.

Explanation:

There are many methods used to control inflation; some work well, while others may have damaging effects. For example, controlling inflation through wage and price controls can cause a recession and cause job losses.

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