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Which of the following is the most immediate impact of rising inflation?

A. Decreasing trade
B. Higher prices
C. Increased money supply
D. Less hiring


Sagot :

Final answer:

Rising inflation leads to higher prices, impacts trade balance, and influences hiring decisions.


Explanation:

Higher prices are the most immediate impact of rising inflation. When there is more money in circulation without a proportional increase in goods and services, prices begin to rise.

As prices increase due to inflation, domestic goods become more expensive relative to foreign goods, leading to increased demand for foreign goods and a shift in trade balance.

The rise in prices can also impact hiring as businesses may adjust output and labor demand based on the cost increase caused by inflation.


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