The correct answer is:
Option A) Production begins to fall
Option D) Interest rates increase
Option E) Purchasing power falls.
Inflation is describes the rise in the prices of goods and services in an economy. While rising prices might seem like a bad thing, slight inflation is actually encourage by economic experts. An inflation of 1-2% is deemed resonable and sustainable.
However, if the inflation rate prices from more than 4% in a year, it means that people will have less purchasing power and would be able to buy less. This would impact production as well.
The opposite of inflation is deflation and is also considered harmful for the economcy.
The answer is true. Hope I helped.
Luckily, I had remembered this type of question before, next time please states how and what you want the answer to be like.
33° North
44° East
the colonists were sick and tired of all the taxes the britich were giving them.
The purpose of the Environmental Protection agency is to protect the health of Americans and also the environment by helping to write and enforce environmental regulations that are passed into law by the U.S. Congress. Out of these answers the best is to, oversee guidelines for clean water, air, and other environmental issues.
