Answer :
Final answer:
Inflation causes purchasing power to fall when prices rise. Signs of high inflation include a decrease in production, purchasing power, and an increase in interest rates.
Explanation:
Inflation occurs when the price of goods and services rises, causing purchasing power to fall if wages do not increase proportionally. High inflation signs include a decrease in production, a decrease in purchasing power, and interest rates increase. These factors can impact individuals holding cash or investments not keeping up with inflation.
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