Lesson 4-4: Inflation
Attempt: 6
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Inflation
“Inflation is as violent as a mugger, as frightened as an armed robber and as deadly as a hit man”
-Ronald Regan
Inflation occurs when overall prices rise and is measured in terms of "rate". For example if there is an inflation rate today of 3% that means one year from now the $1000 television will cost $1,030 (all other things being equal).
Inflation tends to be most harmful to those on fixed incomes as a dollar can buy fewer items. First this reason, it is especially important for your retirement plan to take into account inflation.Learn more about Inflation at:
