High Inflation (Scenario)
Country X primarily exports coffee beans, and in the last two years the demand for coffee beans has caused economic growth in Country X. To accommodate the economic growth, the central bank of Country X increased the nation's money supply. Country X is now experiencing inflation of over 200 percent. A group of economic experts, government representatives, and business owners have gathered for a conference in Country X to discuss the situation.
-Which of the following is most likely an additional problem faced by Country X due to its inflation?

Question

Quizplus · Accepted Answer

High inflation often leads to high interest rates as a measure to control the money supply and curb inflation, making borrowing more expensive.

High Inflation (Scenario) Country X Primarily Exports Coffee Beans, and in the Last