The rate of inflation in a country over four years is shown in the graph below - Junior Cycle Business Studies - Question 2 - 2019
Question 2
The rate of inflation in a country over four years is shown in the graph below.
The rate of inflation in a country 2014 - 2017
Using the above information answer t... show full transcript
Worked Solution & Example Answer:The rate of inflation in a country over four years is shown in the graph below - Junior Cycle Business Studies - Question 2 - 2019
Step 1
Which year has the highest rate of inflation?
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Answer
The year with the highest rate of inflation is 2015, as indicated by the peak of the graph.
Step 2
State one way in which a large increase in the rate of inflation may affect consumers in an economy.
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Answer
Increased inflation may stop people from saving money if the rate of interest earned on savings is less than the rate of inflation, leading to a decrease in real savings.
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