In Times of Rapid Inflation

question 51

Multiple Choice

In times of rapid inflation,

• A)money loses its use as a store of value
• B)money becomes an attractive store of wealth
• C)people postpone purchases as long as possible
• D)people spend less in transactions costs
• E)people tend to save more money

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Definitions:

Firm Forecast

A prediction or estimation about future business conditions that is relatively certain and stable.

Finished Goods Units

Products that have completed the manufacturing process and are ready to be sold.

Required Production Units

The number of units that must be produced in a given period to meet sales demands and inventory requirements.

Beginning Units

Refers to the number of units or quantity of goods on hand at the start of an accounting period.