What are the effects of rapid inflation? check all that apply.

1. interest rates increase.

2. banks loan more money.

3. unemployment declines.

4. uncertainty increases.

5. real income declines.

answers :

1, 4, 5

The correct option all, that is, interest rate increases, banks loan more money, unemployment declines, uncertainty increases and real income declines.

Explanation:

An economy when faces rapid inflation would experience number of changes and uncertainties. When there is an increase in inflation then it would encourage people to demand more, which increases demand for credits/loans. Therefore, it directly increases the rate of interest and capacity of banks to loan out more money.

Similarly, the consumers would also feel a decline in their real income due to increased prices of commodities. On the other hand, inflation period encourages inventors to invest more, which will add to increased employment level in the economy.

Therefore, the uncertainties rises due to a rapid rise in prices and risk.

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The correct answers are 1) Interest rates increase, 4) Uncertainty increases, and 5) Real income declines.

The effects of rapid inflation are interest rates increase, uncertainty increases, and real income declines.

A rapid increase in inflation can damage the country's economy and can create social problems. Low-income people are going to find more expensive products on the market. Real income is going to fall. Real interest rates are going to be negative. Higher borrowing costs for people and businesses. Uncertainty in the market and companies. They would be more cautious when investing their money.

1. ford: gerald ford´s presidency, from 1974 to 1977, faced high inflation, named it public enemy nº1, and created the win program (whip inflation now).

2. carter: president from 1977 to 1981, carter had controversial poitions over abortion, but yet, he enforce the roe vs wade decision, which had pro-choice content.

3. reagan. for his eloquency and powerful speeches in his mandates, from 1981 to 1989, reagan earned this nickname, “the great communicator” .

4. george h w bush: despite many presidents had important roles in managing and trying to end the cold war, it was in bush sr's mandate that the berlin wall was materially destroyed, and he was visited by gorbachev in the uspresident from 1989 to 1993.

5. clinton: defense of marriage act. clinton signed this controvesial act, which defined marriage and spouses in strict heterosexual perspective, that was later declard unconstitutional by the us supreme court.

6. george w bush: in the begining of his presidency, which lasted until 2009, bush jr faced the greatest terrorist attacks in us and probably the worlds history, in september, 11 of 2001.

7. obama: in attempts to cease a great economical crisis, barack obama signed the controversial recovery act in february 2009, which handled 780-billion dollars.

answer; /// i believe the correct answer is (oasis)