98. Inflation can have positive and negative effects on an economy. Positive effects of inflation
include
a. loss in stability in the real value of money and other monetary items over time.
b. uncertainty about future inflation may discourage investment and saving.
c. shortages of goods if consumers begin hoarding in anticipation of price increases in
the future.
d. mitigation of economic recessions and debt relief by reducing the real level of debt.
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