Please enable JavaScript.
Coggle requires JavaScript to display documents.
Inflation - Coggle Diagram
Inflation
-
-
-
effect on firms
Workers will demand higher wages as cost of living increases which increases factors of production resulting in a higher price for goods
low intrest rates means it is more benificial to invest and borrow money then it is to hold on to profits as savings
effects on consumers
prices increase so households with a low fixed income will struggle as they have less purchasing power
-