Date of Award


Document Type


Degree Name

Master of Science


Business Administration


One of the greatest economic problems existing in the United States today is inflation. This problem is magnified because our population is still growing, there are changes taking place in methods of production, and property and wealth are being re-distributed.

Americans continually want more things which are bigger and better and they are willing to go in debt to have them. They want more and bigger automobiles, highways, more services, better schools, and more leisure time. The effective demand sometimes has a way of getting ahead of the capacity to produce. With this demand for goods, prices continue to rise and a unit of currency buys less and less.

Prices climb when there is an increase in effective demand relative to available supplies. Rising prices tend to stimulate production and discourage demand. Prices are the automatic regulators that keep production and consumption in balance. When prices go up, it is not because things are worth more but because the dollar is worth less.