MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Money Supply and Inflation

What is the e...

Question

What is the effect of inflation on domestic investment?

Open in App

Solution

Domestic investment is discouraged due to inflation. This is because of the uncertainty and confusion that is more likely to occur during periods of high inflation & also because of decrease in personal savings due to fall in purchasing power

Suggest Corrections

thumbs-up

0

Similar questions

Q. What is inflation? Discuss the effects of inflation on 'Producers'.

Q. What is inflation? Discuss the effects of inflation on 'fixed income groups'.

Q. What are the effects of inflation on various groups of society?

Q. Out of the various ways of the financing government's investment expenditure, which one of the following is a method of inflation control?

Q. A rapid increase in the rate of inflation is sometimes attributed to the “base effect”. What is “base effect”?

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Money supply and inflation

ECONOMICS

Watch in App

explore_more_icon

Explore more

Money Supply and Inflation

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon