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    kjwarren's Avatar
    kjwarren Posts: 1, Reputation: 1
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    #1

    Feb 17, 2007, 08:34 AM
    Inflation and the effect on the dollar
    Does inflation have anything to do with making a dollar today worth more than a dollar tomorrow?
    alionline83's Avatar
    alionline83 Posts: 40, Reputation: 2
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    #2

    Feb 17, 2007, 01:02 PM
    Inflation means rise in general price level. Inflation directly affects purchasing power of a currency (say Dollar). For example, if you are purchasing one orange in 1 $ today, and general price level will rise tomorrow , the orange will become expensive (say 2$ each) which means 1 Dollar cannot buy an orange now, it can only buy half of it if possible. This means purchasing power of Dollar declined.
    So I this way Dollar tomorrow worth less than Dollar today OR Dollar today worth more than Dollar tomorrow due to Inflation.
    Hope this answers the question. If you have any further problems, you can ask me.

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