When inflation rises,people
A)make less frequent trips to the bank and firms make less frequent price changes.
B)make less frequent trips to the bank while firms make more frequent price changes.
C)make more frequent trips to the bank while firms make less frequent price changes.
D)make more frequent trips to the bank and firms make more frequent price changes.

Question

Quizplus · Accepted Answer

When inflation rises, people tend to make more frequent trips to the bank to withdraw smaller amounts of cash to avoid holding depreciating money, and firms adjust prices more frequently to keep up with rising costs.

When Inflation Rises,people