Higher inflation will lead to higher prices for goods or services, which will increase a company's operating income and lead to a higher ROI.

Question

Quizplus · Accepted Answer

Higher inflation can lead to an increase in prices for goods or services. This can result in companies earning higher revenues and operating income, leading to a higher return on investment (ROI). However, it's important to note that inflation can also lead to higher costs for the company, such as increased production costs or higher interest rates, which can offset any potential benefits.

Higher Inflation Will Lead to Higher Prices for Goods or Services