00:03
What are the effects of rapid inflation? check all that apply.
00:07
A, interest rates increase.
00:09
B, bank loans.
00:10
Banks loan more money.
00:12
C, unemployment declines.
00:14
D, uncertainty increases and or e, real income declines.
00:20
So with rapid inflation, the ones that are true here is number one or a, interest rates increase.
00:28
Number four or d, uncertainty increases.
00:32
And number five, or e, real income declines.
00:36
The effect of rapid inflation, our interest rates increase on certainty increases and real income declines.
00:42
So what is inflation? so inflation is a rise in prices, which can then be viewed as a decline in purchasing power.
01:01
As prices rise, every dollar i make buys me less things.
01:13
So when we have rapid inflation incurring, it means that prices are increasing very, very quickly.
01:20
And our purchase power is going to decline very, very things...