What are the signs of high inflation? Check all that apply.

1. Production begins to fall.

2. Production begins to rise.

3. Interest rates decrease.

4. Interest rates increase.

5. Purchasing power falls.

6. Fewer fixed rate bank loans.

options 1,4,5 and 6 on edg 2020

Explanation:on edg 2020 I am correct

Option 1, 4, 5 and 6 are signs of high inflation.

Explanation:

Option 1 and 5: If the inflation rises increases then the currency starts diminishing and results in discouraging of investment. This discouragement is also because high inflation has lowered the purchasing power of customers who now don't want to buy our products. If the inflation grows with time this means that the things are getting expensive and out of range for the consumers which means that the increase in inflation lowers the purchasing power of consumers.

Option 4 and 6: The central bank increases the interest rate as the inflation rate increases to limit the growth in consumer spending. This increase in the interest rate moderates the economic growth. This increase in interest rate results in increased floating rate conventional loans offering by the banks and expensive fixed rate bank loans because their is excessive risk that the interest rate will increase so the bank increase the bank interest rate on the fixed rate loans to compensate its risk.