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Inflation has drastic effect on the purchasing power of people due to constant rise in price of necessity goods or as follow .As there is relatively increase of money supply in market
Change in the interest affects the investment
because ,rise in interest rate affect the cost of borrowing of business ,which ultimately discourages the business to increase investment spending
On the other hand, decrease in the interest encourages the business to increase there spending
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https://www.investopedia.com/university/inflation/inflation4.asp