Capital expenditures levels tend (in real terms) during periods of relatively high inflation than during low inflation times.
A)to be higher
B)to be lower
C)to be the same
D)to depend on business risk

Question

Quizplus · Accepted Answer

During periods of high inflation, the cost of capital increases, and uncertainty about future costs and revenues can lead businesses to reduce capital expenditures.

Capital Expenditures Levels Tend (In Real Terms) During Periods of Relatively