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What is one effect of inflation on production?
  • a)
    Encouragement of hoarding behavior
  • b)
    Stabilization of resource allocation
  • c)
    Decreased uncertainty
  • d)
    Increased capital accumulation
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is one effect of inflation on production?a)Encouragement of hoard...
Inflation, particularly hyperinflation, can lead to uncertainty in the economy, prompting businesses and individuals to hoard goods in anticipation of further price increases. This behavior can disrupt normal production and distribution.
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