Which of the Following Statements Correctly Identifies a Reason Inflation

question 33

Multiple Choice

Which of the following statements correctly identifies a reason inflation can be used as a countercyclical policy tool?

• A) Inflation reduces money costs and hence stimulates an economy during slowdowns.
• B) Inflation increases consumer demand, which is necessary for combating slowdowns.
• C) Inflation sometimes increases the demand for workers, which increases output and helps combat slowdowns.
• D) Inflation increases consumer confidence, which is an absolute necessity to counter act business cycles.

---

Definitions:

Prospecting

The act of searching for potential customers or clients to generate new business opportunities.

Qualified Prospect

A Qualified Prospect is a potential customer who has been assessed and determined to fit the target market's criteria, showing both interest in and the capacity to purchase a product or service.

Purchasing Agent

An individual who is responsible for buying products, equipment, or services for a company or organization, often negotiating terms and prices.

Secretary

A person employed to handle administrative and office tasks, such as scheduling meetings, managing communications, and maintaining records.