How Might Low Inflation Levels in the General Economy Affect

question 38

Multiple Choice

How might low inflation levels in the general economy affect a company like McDonald's?

• A) McDonald's will pay much higher prices for supplies and will charge customers more for its products.
• B) McDonald's will pay higher prices for supplies and will charge customers more for its products.
• C) McDonald's will pay relatively constant prices for supplies, but will be unable to increase the price paid by customers.
• D) McDonald's will pay relatively constant prices for supplies and will charge customers more for its products.
• E) McDonald's will pay higher prices for supplies, but will be unable to increase the price paid by customers.

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