Describe the Economic Impact of Inflation on Business
This is because of the uncertainty and confusion that is more likely to occur during periods of high inflation. The ethical standards and the public moral had fallen to miserably low levels during the period of hyper-inflation in Germany. Importance Of Inflation For Industry Economics Help It was also viewed that as long as firms produced goods there would be people to buy. . Describe the economy during the Great Depression using the economic indicators ie. Inflation results in arbitrary redistribution of wealth favoring businessmen and debtors and hurting consumers creditors petty shopkeepers small investors and fixed income earners. Inflation tends to discourage investment and long-term economic growth. With the general prices of goods and. Effects on Redistribution of Income and Wealth 2. Inflation will reduce the demand for several products because the customer will ration his income on goods. Therefor...