Which of the Following Is Correct

question 294

Multiple Choice

Which of the following is correct?

• A)Inflation impedes financial markets in their role of allocating savings to alternative investments.
• B)Inflation encourages savings through the tax treatment on capital gains.
• C)Inflation encourages larger holdings of currency by the public.
• D)Inflation reduces people's real purchasing power.

---

Definitions:

Discount Sale

A sales promotion technique where products or services are sold at a price lower than their original price to stimulate demand.