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

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

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 high and tourism is down.

Answer 1

The most accurate analysis of what rising inflation and interest rates can do to Nevada's economy is: 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 deter consumer spending. Additionally, higher interest rates can lead to increased borrowing costs, affecting both consumers and businesses. In Nevada, which heavily relies on tourism, if inflation and interest rates rise, it may result in fewer tourists and reduced spending, thereby straining the state's economy.