Series 65: 1.1.2.1 Inflation And Interest Rates

Taken from our Series 65 Online Guide

1.1.2.1  Inflation and Interest Rates

Inflation is an increase in the prices of goods and services and a fall in the purchasing power of a currency. Inflation can result when demand for goods and services outstrips their supply. This usually occurs near the end of an expansionary phase, when too much money is chasing too few goods. Inflation can occur because of:

High consumer confidence in the economy

An economy that has reached its production potential

Excess money in the economy

Increases in wages and

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