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Inflation is considered to be undesirable because it arbitrarily redistributes wealth and real income. It also causes consumers to pay more for goods and services and causes the value of the dollar to go down.

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10y ago
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6mo ago

Inflation is undesirable because it erodes the purchasing power of money, reducing the value of savings and fixed incomes. It can also lead to uncertainty and instability in the economy, making it harder for businesses and individuals to plan for the future. Additionally, high inflation can distort price signals and hinder efficient resource allocation.

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Q: Inflation is undesirable because it
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