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Raising prices mean that consumers are less likely to purchase goods and services, and it also causes concern amongst them. A main reason for the increase in the inflation rate is the increase in energy costs. The increase in costs of energy is due primarily to a decrease in the supply of energy and an increase in the demand...
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Also playing a role in the lack of consumption is the purchasing power of net assets, or net wealth. In recent years when the stock market had been performing well, consumers were experiencing large increases in net wealth. Now that the market has been falling, net wealth is down and people have less purchasing power...
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