Question

A country experiencing __________ is seeing supply surpass demand; as a result, the price of goods and services increase, and the country’s currency loses value.

Answer 1

A country experiencing inflation is seeing supply surpass demand; as a result, the price of goods and services increase, and the country’s currency loses value.

Explanation:

A quantification of the rate at which an economy highers the average range of costs over a particular time of a basket of chosen products and services is understood as an Inflation. Inflation often represented as a percentage and may implies a decline in the purchasing power of the currency of a country.

It is not beneficial to the economy or individuals whenever inflation is too extreme of course. Inflation will always diminish money value, unless interest rates go up than inflation. And the higher the inflation, the less likely the savers would see any real value for their money.