Question 4 • MCPSS AL-Grade 6 United States Studies: The Industrial Revolution to the Present - Summer School 2026
Quickly rising prices can reduce consumers’ purchasing power and create economic uncertainty. Less business investment means fewer projects, jobs, and opportunities for growth, while high interest rates make borrowing more expensive and can discourage both business investment and consumer spending. Low and stable inflation is generally consistent with a healthy economy, and high wages alone do not necessarily cause a recession.
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