When the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. When price are increasing day by day then it is very harmful for our economy. There is always a negative relation between price and demand. When price increases then demand decreases. When price decreases then demand increases.
Who is lehman Brothers?
Lehman brother are the big investor or bankers in the USA. But in September, 2008 he was suffered from various losses. In History, it is the largest bankruptcy of Lehman brother in USA. It is the great depression period of 2008. On September 10, 2008, Lehman suffered a loss of $3.9 billion. when depression period occurred then it effects on whole of the economy.
Lehman Brother's
Depression period of 2008
In America and Canada, people are take interest to invest in the property and they are not take interest in saving. People also take loan from bank to invest in the property. So that price increases day by day. When prices increases day by day then bank also invested in this property. During the depression period 2008 suddenly price of the property decreases. And people sale the property to the other person but person not purchased the property reason of decreased price. Price decreases at a very high rate. It is the largest bankruptcy of Lehman brother in USA. It is the great depression period of 2008. During this period, it effects on whole of the economy.