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.
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The causes of the Cold War were rooted in the failure of the Allies (U.S., Great Britain, U.S.S.R.) to reach common peace agreements with regard to Germany and Poland at the Yalta and Potsdam Conferences. ... As a result, the Cold War polarization between the U.S. and the Soviet Union lasted for almost 50 years.
