Which of the following best analyzes what rising inflation and interest rates can do to Nevada's economy?(1 point)

Question

Responses

The economy will boom because prices are low and tourism is up.
The economy will boom because prices are low and tourism is up.

The economy will struggle because prices are low and tourism is up.
The economy will struggle because prices are low and tourism is up.

The economy will struggle because prices are high and tourism is down.
The economy will struggle because prices are high and tourism is down.

The economy will boom because prices are high and tourism is down.

Answer 1

The best analysis of the impact of rising inflation and interest rates on Nevada's economy would be:

The economy will struggle because prices are high and tourism is down.

Rising inflation generally leads to higher prices for goods and services, which can reduce consumer spending. Higher interest rates can also lead to decreased borrowing and spending, further impacting the economy and tourism, which is a significant part of Nevada's economic landscape.