The effect of the high rates of inflation experienced during the 1970s and early 1980s was to make:

Question

Quizplus · Accepted Answer

High rates of inflation during the 1970s and early 1980s made capital budgeting decisions less reliable because inflation eroded the value of money over time, making it difficult for businesses to accurately predict future cash flows and profitability. As a result, it became more challenging for companies to make long-term investment decisions, which could have a negative impact on their growth and competitiveness. The other choices do not accurately reflect the effects of inflation during this period.

The Effect of the High Rates of Inflation Experienced During