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Assume the Expected Inflation for This Year Was 2%,but the Actual

question 7

Essay

Assume the expected inflation for this year was 2%,but the actual inflation turned to be 6%.What are the implications of this unanticipated inflation on:
a) your salary?
b) your student loan?


Definitions:

Appreciation

An increase in the value of an asset over time, which can be influenced by factors like demand, inflation, and currency value changes.

Exchange Rate

An exchange rate is the value of one currency for the purpose of conversion to another currency.

Appreciated

In financial terms, it means an increase in the value of an asset or currency.

Depreciated

A decrease in the value of an asset over time due to wear and tear, age, or obsolescence.

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