Unpredictable inflation can cause businesses:
A)to have a hard time planning future production.
B)to cease production until they know how to adjust for inflation.
C)to restrict output and stockpile inventory.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

Unpredictable inflation makes it difficult for businesses to plan for future production, as they cannot accurately predict the cost of materials, labor, and other production expenses. This uncertainty can lead to problems with budgeting, forecasting profits, and managing cash flow.  Ceasing production or restricting output would not be a practical solution as it would impact a company's ability to generate revenue and meet customer demand.

Unpredictable Inflation Can Cause Businesses