During Inflationary Times,which of the Following Is Unlikely to Happen

question 109

Multiple Choice

During inflationary times,which of the following is unlikely to happen?

• A)People change their expectations about the inflation rate.
• B)Workers try to get increases in nominal wages.
• C)People are willing to lend money for longer periods.
• D)Relative price changes become harder to recognize.
• E)People buy physical assets as a hedge against rising prices.

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Definitions:

Credit Report

A detailed report of an individual's credit history prepared by a credit bureau and used by lenders to determine a loan applicant's creditworthiness.

Aging of Receivables

The process of categorizing accounts receivable according to the length of time an invoice has been outstanding for better management of credit risk.

Extending Credit

The act of allowing a buyer to purchase goods or services now and pay for them later, typically involving terms and conditions regarding repayment.

Cash Flow

The total amount of money being transferred into and out of a business, particularly in terms of liquidity and financial planning.