Speculation during periods of inflation can result in all of the following except
A)People buying resources for resale later,rather than using the resources for current production.
B)A movement inside the production possibilities curve.
C)People buying gold,silver,jewelry,and the like instead of capital for production.
D)More resources going into the production process.

Question

Quizplus · Accepted Answer

Speculation during periods of inflation often involves individuals investing in production processes to take advantage of higher prices, which can lead to an increase in resources going into production, rather than a decrease. Therefore, choice D is the correct answer as it is the only option that does not align with the effects of speculation during periods of inflation.

Speculation During Periods of Inflation Can Result in All of the Following