Question

What are consequences of rapid inflation?

(Select all that apply.)

Savings accounts become less desirable because interest earned is lower than inflation
Individual purchasing power increases, which results in an increase in demand.
Individual purchasing power decreases, which results in a decrease in demand.
People postpone purchasing expensive items, such as homes, until prices drop.

Answer 1

The answers are

Savings accounts become less desirable because interest earned is lower than inflation

Individual purchasing power increases, which results in an increase in demand.