Industries most sensitive to inflation-induced profits are those with cyclical products such as lumber, copper, and so on.

Question

Quizplus · Accepted Answer

Industries with cyclical products, such as lumber and copper, are highly sensitive to fluctuations in prices and inflation rates, which can impact their profits. Inflation can cause the cost of production to increase, leading to higher prices for consumers and potentially dampening demand for these goods. Therefore, industries with cyclical products are more likely to be affected by inflation-induced profits.

Industries Most Sensitive to Inflation-Induced Profits Are Those with Cyclical