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What are the effects of rapid inflation? Check all that apply. (ones in bold are correct)
- Interest rates increase.
- Banks loan more money.
- Unemployment declines.
- Uncertainty increases.
- Real income declines.

Respuesta :

Uncertainty increases.
This is caused by lack of confidence in the country currency.
Real income declines

Inflation leads to investment problems and result to capital flight. a decline in investments implies, lower income.
 Interest rates increase
The financial control institutions are forced to increase intrest rates to lower the amount of money in the economy.
marvineetesh3

Rapid inflation is also called the hyperinflation, It is a term to mark rapid, unreasonable, and out-of-control general price raises in an economy.

The effects of the rapid inflation are:

A.  Interest rates increase.

D. Uncertainty increases.

E. Real income declines.

What is rapid inflation?

Rapid inflation is defined as very advanced and typically speeding inflation. It speedily erodes the real value of the local currency, as the prices of all goods raises.  

This makes people to inform their ownerships in that currency as they normally switch to more stable foreign currencies.

Here, the Interest rates increase due to the financial power organizations that are compelled to raise interest rates to decline the amount of money in the economy, so the uncertainty also increases.

Therefore, options A, D, and E are correct.

Learn more about rapid inflation, refer:

https://brainly.com/question/1301976

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