Which of the following is the most immediate impact of rising inflation?

A. Decreasing trade
B. Higher prices
C. Increased money supply
D. Less hiring



Answer :

Final answer:

Rising inflation leads to higher prices as a result of an increased money supply. This causes more money to chase the same goods and services, leading to price increases.


Explanation:

Higher prices would be the most immediate impact of rising inflation. As the money supply increases, there is more money chasing the same amount of goods, leading to a rise in prices. This inflationary effect occurs because of the imbalance between money supply and available goods and services.


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