Which of the following is a likely macroeconomic consequence of inflation?
A)Focus on long-term planning.
B)Speculation.
C)Antitrust issues.
D)None of the other choices.

Question

Quizplus · Accepted Answer

Inflation often leads to speculation, as people try to invest their money in assets that will hold their value better than the currency. This can lead to further price increases and economic instability. Option A is not necessarily a consequence of inflation, as it depends on the specific response of individuals and firms. Option C is not directly related to inflation. Option D is incorrect, as inflation is known to have significant macroeconomic consequences.

Which of the Following Is a Likely Macroeconomic Consequence of Inflation