what are the signs of high inflation? check all that apply.\n□ production begins to fall.\n□ production…

what are the signs of high inflation? check all that apply.\n□ production begins to fall.\n□ production begins to rise.\n□ interest rates decrease.\n□ interest rates increase.\n□ purchasing power falls.\n□ fewer fixed rate bank loans.

what are the signs of high inflation? check all that apply.\n□ production begins to fall.\n□ production begins to rise.\n□ interest rates decrease.\n□ interest rates increase.\n□ purchasing power falls.\n□ fewer fixed rate bank loans.

Answer

Brief Explanations:

High - inflation often leads to uncertainty. Producers may cut back on production due to cost and demand uncertainties, so production may fall. Lenders demand higher interest rates to compensate for the eroding value of money, so interest rates increase. As prices rise, the same amount of money can buy fewer goods and services, so purchasing power falls. With high inflation expectations, banks are less likely to offer fixed - rate loans as they may lose out on future interest rate increases.

Answer:

Production begins to fall. Interest rates increase. Purchasing power falls. Fewer fixed rate bank loans.