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INFLATION is the rate
at which
The General level of prices for “goods
and services” is rising
Consequently
Purchasing power of currency is falling.
1 • HIGH INFLATION
2 • MODERATE
3 • DEFLATION
High inflation
Increase
price of G&S
Investor
demand rise
Interest rate
increases
Expenses of
companies
increase
Profit goes
down
Stock prices
go down
Price falls
Competition
increases
Demand
drop
Production
slows down
Unemploym
-ent
increases
Profit
decreases
Stock
market goes
down
Relationship between Inflation & Stock Market...
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