High Rates of Inflation Discourage Research and Development by

question 4

Multiple Choice

High rates of inflation discourage research and development by

• A) making long-run forecasting more hazardous, increasing the risk on longer-term programs.
• B) raising the price of bonds sold to finance new investment.
• C) forcing the government to lower taxes to fight inflation.
• D) reducing the amount of discretionary money households and businesses have to spend on research and development.
• E) encouraging investors to seek opportunities in areas where the return is high but the outcome is less predictable than in basic research.

---

Definitions:

Welded Texture

A term used in geology to describe rocks that have been fused together by high temperatures, often found in volcanic deposits.

Pyroclastic Eruption

A volcanic eruption characterized by the explosive ejection of hot ash, gas, and volcanic fragments.

Igneous Rock

A type of rock that forms through the cooling and solidification of magma or lava, with examples including granite and basalt.

Pyroclastic Eruption

A volcanic phenomenon involving the expulsion of hot gases, ash, and volcanic debris.