A high inflation rate would result in a high degree of

Question

Quizplus · Accepted Answer

High inflation would result in a decrease in the purchasing power of a currency, which is known as purchasing power risk. This means that the value of money decreases over time, making it harder for individuals and businesses to afford goods and services. It can also lead to higher costs of production and distribution for businesses, which increases overall financial risk. However, the primary risk associated with high inflation is purchasing power risk. Therefore, the answer is D.

A High Inflation Rate Would Result in a High Degree