The following indicators are characteristic of economic instability:
A) decreasing interest rates, downturn in foreign investment and increase in offshore production.
B) high inflation rates, rising interest rates and volatile foreign exchange rates.
C) disinvestment, intervention by political bodies and falling interest rates.
D) increase in real GDP, volatile interest rates and falling imports.

Question

Quizplus · Accepted Answer

High inflation rates, rising interest rates, and volatile foreign exchange rates are indicators of economic instability because they reflect uncertainty and potential difficulties in the economy. High inflation erodes purchasing power, rising interest rates can dampen investment and spending, and volatile exchange rates can disrupt international trade and investment.

The Following Indicators Are Characteristic of Economic Instability