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प्रश्न
Mention the effect of inflation on the value of money.
Explain the effect of inflation on value of money.
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उत्तर
- By value of money, we mean its purchasing power or buying capacity. It refers to the amount of things that can be exchanged for a unit of money.
- The value of money depends upon the prices of goods and services.
- During inflation, prices of goods and services increase. Therefore, the purchasing power of money falls. There exists an inverse relationship between price level and value of money.
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संबंधित प्रश्न
Answer the following :
What are the Non - economic effects of inflation?
The debt which yields income to the government is called as ______.
Identity the correct statement from the following:
Observe the relationship of the first pair of words and complete the second pair.
During inflation the debtors gain.
During inflation the ______ lose.
Purchasing power of money falls when ______.
Which of the following section of the society is most adversely affected by inflation?
State the effect of inflation on creditors.
Why do producers gain in the short run during inflation?
How does inflation affect the distribution of income?
Discuss the effects of inflation on production.
How does inflation affect the following?
Debtors and creditors
How does inflation affect the following?
Farmers
Which section of the society is worst affected during inflation? Why?
Explain the impact of inflation on producers in the short run.
