One of the consequences of inflation between 1950 and the 1970s was ________.

Name: One of the consequences of inflation between 1950 and the 1970s was ________.
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Inflation reduces the real value of fixed-rate debt, which means that as prices rise, the real burden of existing debt decreases relative to the overall economy's size (GDP). This leads to a reduction in the ratio of debt to GDP, as the nominal value of GDP increases faster than the nominal value of fixed-rate debt.

One of the Consequences of Inflation Between 1950 and the 1970s