During Times of High Inflation, People Hold ________ and Must

question 10

Multiple Choice

During times of high inflation, people hold ________ and must incur ________.

• A) less savings; lower interest rates
• B) more money; lower interest rates
• C) less money; higher shoe-leather costs
• D) more savings; shoe-leather costs
• E) less savings; higher transaction costs

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Definitions:

Business Operation

The day-to-day activities involved in running a business, including production, marketing, and managing finances.

Terminated

Refers to the action of ending or concluding something, such as employment, contracts, or legal obligations.

Sole Proprietorships

A type of business owned and operated by one individual, where there is no legal distinction between the owner and the business.

Corporations

Legal entities that are separate and distinct from their owners, providing limited liability, easy transferability of shares, and perpetual existence.