Inflation


Definition of "Inflation"

Mike Janssen
Mike Janssen Allen Tate Realtors

Increasing price levels. In inflation, a dollar today is worth more than a dollar tomorrow. Inflation is caused by many factors including excess demand termed demand-pull inflation. Higher material and labor costs called cost-push inflation may be at fault. Excessive government spending and/or borrowing can also be inflationary. All of these factors may interrelate as the cause for inflation.

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