what are the causes of inflation?
Answers
Explanation:
Too much money chasing too few goods. This a basis of inflation.
Answer:
Inflation is defined the demand depends on supply in which when the demand increases the supply also increases.
Explanation:
Causes of inflation:-
1) Increased in Money Supply:- The higher the rate of money supply the higher the rate of inflation.
2) Increased in Disposable Income:- When the income of the person increases which also increases the demand for goods and services. It increases with the increase in national income. Reduction in savings and taxes.
3) Increase in Pubic Expenditure:- Government rate also increases at some phenomenal rate which increases in demand and supply of goods & services.
4) Increase in Consumer Spending:- When consumer expenditure increases the demand for goods and services also increases. When they earn more money then they start spending more on goods and services.
5) Increase in Exports:- When the demand for domestically product increases in foreign countries, the earning of export also increases. By which the economic condition of our country will increase.