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What Problems Can High Inflation Rates Cause for the Economy

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What problems can high inflation rates cause for the economy?


Definitions:

Effective Annual Rate

The actual interest rate an investor receives or pays in a year, taking into account the effect of compounding.

Quarterly Return

The financial return or profit generated by an investment over a three-month period.

Investment

Commitment of current resources in the expectation of deriving greater resources in the future.

Effective Annual Rate

The interest rate on an investment or loan which accounts for the effect of compounding over a given period.

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