Madeleine Charles

Social Studies

18 December, 22:06

The inflationary spiral explains the causes and effects of high inflation. The spiral usually begins with a rise in production costs. What is the direct effect?

A) Producers raise prices to continue to make a profit.

B) The government prints more money and lowers its value.

C) Workers negotiate with employers to receive more money.

D) Consumers need higher wages to keep up with rising prices