State and briefly explain THREE arguments against inflation
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decreasing real returns on savings. Explanation: However, if other economic variables do not move exactly in sync with inflation, or if they adjust for inflation only after a time lag, then inflation can cause three types of problems: blurred price signals. unintended redistributions of purchasing power.
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The negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future...
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