Question

3: An unexpected increase in Inflation should?​

Answer 1

Answer:

Unexpected inflation affects the economic cycle. Unanticipated inflation reduces the validity of the information on market prices for economic agents. ... This leads to the cost of borrowing being higher, hence reducing economic activity because it discourages investments.

Explanation:

I hope this is hopeful

Answer 2

Answer:

Unexpected inflation

Explanation:

affects the economic cycle. Unanticipated inflation reduces the validity of the information on market prices for economic agents. ... This leads to the cost of borrowing being higher, hence reducing economic activity because it discourages investments.