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What can bring about inflations in buying and selling
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[QUOTE="Mastergp, post: 274831, member: 85422"] They are different things that could cause inflation to occur and they include the following: Increase in demand: When the demand for goods and services is greater than supply, this results in inflation. Low production: Low production of goods and services can lead to their scarcity and when supply cannot meet up with demand, inflation set in. War: War is seen as the major cause of inflation as people no longer produce, resulting in high volume of money pursuing fewer goods. Increase in salaries and wages: When salaries and wages are increased, without corresponding increase in supply of goods and services, it can lead to excess money in circulation chasing fewer goods. Population increase: A sudden rise in population will result in a corresponding rise in Dena d for goods and service and if there is no corresponding rise in supply, it will result in inflation. Level of importation: High cost of importing raw materials can lead to high cost of goods, which is passed to chasing fee goods and services Inadequate storage facilities: When goods produced cannot be stored for future use,it can lead to scarcity, resulting in inflation. [/QUOTE]
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What can bring about inflations in buying and selling
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