Market transactions, particularly long-term contracts, _____
A) become more complicated as inflation becomes more unpredictable.
B) become more complicated as inflation becomes less unpredictable.
C) become less complicated as inflation becomes more unpredictable.
D) become less complicated as inflation becomes less unpredictable.
E) are not affected by inflation.

Question

Quizplus · Accepted Answer

Inflation causes uncertainty about future prices, which can make it more difficult to negotiate long-term contracts that involve fixed prices. As a result, market transactions, particularly long-term contracts, become more complicated as inflation becomes more unpredictable.

Market Transactions, Particularly Long-Term Contracts, _____