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When People Refer to Inflation,are They Generally Referring to Asset

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Essay

When people refer to inflation,are they generally referring to asset price inflation or goods price inflation? What is the difference between the two?


Definitions:

Interest on Interest

The interest earned on the reinvestment of previous interest payments, often seen in compound interest scenarios.

Simple Interest

Interest charged exclusively on the initial borrowed amount, or on whatever portion of the principal is still outstanding.

Compounded Annually

A method of calculating interest in which the interest earned on an investment is reinvested, and new interest is earned on that interest annually.

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