If Inflation Were Reduced,then It Is

question 6

Multiple Choice

If inflation were reduced,then it is

• A)likely that real incomes would rise more rapidly and labor markets would be more flexible.
• B)likely that real incomes would rise more rapidly but unlikely that labor markets would be more flexible.
• C)likely that labor markets would be more flexible but unlikely that real incomes would rise more rapidly.
• D)unlikely that real incomes would rise more rapidly and unlikely that labor markets would be more flexible.

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Definitions:

Caveat Emptor

The legal concept of “let the buyer beware” that was pervasive in the American business culture prior to the 1960s.

Multinational Firm

A company that conducts business and has facilities and other assets in at least one country other than its home country.

Transnational Firm

A company that operates across national borders, managing production or service facilities in more than one country.

International Firm

A business that engages in commercial transactions across national borders.