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Regarding the statement "steadily increasing inflation is associated with a growing economy," the answer is:
False.
Here's why:
1. Inflation refers to the increase in prices of goods and services over time. When inflation is steadily increasing, it can lead to a decrease in the purchasing power of money. This means that with the same amount of money, you can buy fewer goods and services due to higher prices.
2. In a growing economy, there is an increase in the production of goods and services, higher employment rates, and overall economic expansion. While some inflation is normal in a growing economy, steadily increasing inflation can have negative effects such as reducing consumer purchasing power, leading to uncertainty for businesses, and potentially causing economic instability.
3. A moderate level of inflation can be a sign of a healthy economy, but when inflation increases rapidly and continuously, it can indicate underlying issues like excessive demand, supply chain disruptions, or other economic imbalances that may harm the economy in the long run.
Therefore, while some level of inflation is expected in a growing economy, steadily increasing inflation is not necessarily a positive sign and can have detrimental effects on the economy over time.
