What Is Most Likely to Happen When Inflation Increases

question 2

Multiple Choice

What is most likely to happen when inflation increases?

• A) Consumers buy more discretionary merchandise.
• B) Consumers buy fewer personal care and home entertainment products.
• C) Off-price and discount retailers suffer from lower sales.
• D) Consumers buy lower-priced foods.
• E) Consumers buy less food.

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Definitions:

Net Profit Margin

Net profit margin is a financial ratio that shows what percentage of a company's revenues remain as net income after all expenses are deducted.

Earnings Per Share

A financial ratio that measures the portion of a company’s profit allocated to each outstanding share of common stock, indicating company profitability.

Time Management

Making effective use of available time.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to achieve the desired goals.