| Inflation |
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The
rate at which the general level of prices for goods and services is
rising, and subsequently purchasing power is falling.
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As
inflation rises this means that every dollar will buy less % of a
good. If the inflation rate is 2% then a $1 pack of gum will cost
$1.02 in a year.
The fed tries to sustain an inflation rate of between 2-3%. |
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Dictionary
