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Username: ForexGuy

Rating:
Guru Stars

Asked to: Dara Madee

Date Created: 20 Apr 2016
Category 28
Tag Financial
Question What is the 'Sacrifice Ratio'?
Advice from Guru
Hello Forex Guy,

The sacrifice ratio is an economic ratio that measures the costs associated with slowing down economic output to change inflationary trends. The ratio is calculated by taking the cost of lost production and dividing it by the percentage change in inflation, and its quotient gives the loss of output per 1% change in inflation.

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