Claudia Valdez

27 March, 10:37

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

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