Inflation risk may include changes in buying power and:
A)rising prices.
B)falling prices.
C)decisions to buy later.
D)decisions to buy now.
E)All of these.

Question

Quizplus · Accepted Answer

Inflation risk involves changes in buying power due to rising prices, which can also lead to falling prices in real terms, influencing decisions to buy later (to avoid higher prices) or now (to pre-empt further price increases). Thus, all options are aspects of inflation risk.

Inflation Risk May Include Changes in Buying Power And