Inflation Affects Production Decisions Because It

question 136

Multiple Choice

Inflation affects production decisions because it

• A)Decreases input costs.
• B)Reduces speculation.
• C)Causes businesses to focus more on the future.
• D)Causes businesses to be more cautious since the future appears more uncertain.

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Definitions:

Credit Column

A section in financial accounting records where increases in liabilities, revenues, and equity accounts, and decreases in assets and expenses are recorded.