Question

1 HOW THE INFLATION AFFECT OUR ECONOMY AND THE PEOPLE IN IT. 2. WHO DOES IT HIT THE HARDEST. 3.HOW CAN PROTECT YOUR SELF AGAINST INFORMATION . PLEASE TYPE

Answer 1

1.

Rise in prices for services, goods and commodities in an economy effects the whole economy. this rise in prices is known as Inflation. inflation is like a devil for an economy. it  affects the cost of living and it affects cost of doing business. Government bond yields and corporate is also affecting during inflation.

2.

The one who is hit the hardest with inflation are the money lenders as the value of money goes down due to inflation as the repayment by their receivers during the inflation period gives them a big loss. Other people affected by inflation are people with fixed income,their income remains same but prices of basic commodities goes up.

3.

By investing your money into physical assets such as gold or silver,we can safeguard ourselves during time of inflation. We can also protect ourself if we invest in other nation's currency. Starting a business also helps you to combat inflation as you are not dependent on fixed income.