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by Ema cool on December 3rd, 2004
The main causes of inflation is the total demand in the economy is rising while the available goods are limited, so they are forced to raise the price. another is the cost of raw materials. if the cost of raw materials rises, the price rises too. the another is the monetary inflation. there is a change in money supply. if there are more money in circulation, certainly the price will be high.
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