Inflation Might Lead to ________ Because ________

question 40

Multiple Choice

Inflation might lead to ________ because ________.

• A)higher demand for stocks;as the price level increases so do stock prices
• B)higher production costs;businesses have to advertise more often due to faster price revisions
• C)lower transaction costs;we would hold less cash
• D)all of the above
• E)none of the above

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Definitions:

China

A country in East Asia, the world's most populous nation, known for its significant influence on global economy, politics, and culture.

Trade Surplus

Occurs when the value of a country’s exports exceeds the value of its imports over a given period.

Absolute Advantage

An economic term referring to the ability of a country, entity, or individual to produce a good or service more efficiently than its competitors using the same resources.

Brazilian Worker

A term that could refer to the labor force characteristics, working conditions, or socio-economic aspects of workers in Brazil, but lacks specificity without context.