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what is inflation?
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Answer Posted / aishwarya pillai
Inflation is fall in value of money/fall in purchasing
power of money.
Eg: My grandfather was able to buy 10 pencils for Rs.10 in
1990. Now my daughter is able to buy 5 pencils for Rs.10 in
2009.This fall in purchasing power of money from 10 pencils
to 5 pencils during 19 years is called inflation. Now your
money will buy you less than what it used to buy 19 years
back.
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