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What is the impact of inflation on economic growth?
  • a)
    Boosts profits and motivates investment
  • b)
    Decreases economic growth and increases uncertainty
  • c)
    Has no impact on economic growth
  • d)
    Leads to a decrease in production and employment
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What is the impact of inflation on economic growth?a)Boosts profits an...
Inflation, when it exceeds a certain level, can decrease economic growth by increasing the cost of production, reducing savings and investment, and creating uncertainty. It is important to maintain a stable inflation rate for sustainable economic growth.
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What is the impact of inflation on economic growth?a)Boosts profits and motivates investmentb)Decreases economic growth and increases uncertaintyc)Has no impact on economic growthd)Leads to a decrease in production and employmentCorrect answer is option 'B'. Can you explain this answer?
Question Description
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