Heavy Use of Long-Term Debt May Be Beneficial in an Inflationary

question 48

Multiple Choice

Heavy use of long-term debt may be beneficial in an inflationary economy because

• A) the debt may be repaid in more "expensive" dollars.
• B) nominal interest rates exceed real interest rates.
• C) inflation is associated with the peak of a business cycle.
• D) the debt may be repaid in "cheaper" dollars.

---

Definitions:

Networking Software

Programs that enable computers and devices to communicate over a network, facilitating data exchange, resource sharing, and communication.

Customer Benefit Plan

A plan that contains the nucleus of information used in the sales presentation.

Business Relationships

Connections and interactions between individuals or organizations that are based on professional interests and aimed at mutual benefits.

Customers' Needs

The requirements or desires that customers expect to be fulfilled by a product or service.