When a Country's Inflation Rate Varies Substantially from Year-To-Year and Is

question 92

Multiple Choice

When a country's inflation rate varies substantially from year-to-year and is therefore difficult to predict, this will

• A) reduce the volume of trade and the gains derived from it.
• B) reduce the risk accompanying investment.
• C) encourage entrepreneurs to innovate and develop better products.
• D) increase the level of foreign investment in the country.

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