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what are the signs of high inflation? check all that apply. production begins to fall. production begins to rise. interest rates decrease. interest rates increase. purchasing power falls. fewer fixed rate bank loans.
In high - inflation situations, central banks often raise interest rates to combat inflation. As the value of money decreases with inflation, purchasing power falls. Higher inflation can also lead to economic uncertainty, making banks less likely to offer fixed - rate loans. Production may fall due to increased costs and uncertainty. Interest rates increase as a response to inflation.
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Production begins to fall.
Interest rates increase.
Purchasing power falls.
Fewer fixed rate bank loans.