Question

Which of the following is a potential benefit of inflation?

Answer 1

Answer:

The answer is: More business profits

Explanation:

Inflation is defined as a general increase in the price of goods and services. When inflation is too high, in the long run everyone will be worse off.

But in a very short term, some businesses can benefit from high inflation since they can sell their products at higher prices and earn larger profits. But this can only last until high inflation causes the business's inputs (materials, supplies, labor, etc.) to increase their price and the benefits will be history.

Answer 2

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Among the choices the one that has 
 potential benefit of inflation is More business profits

When inflation is too high of course, it is not good for the economy or individuals.Inflation will always reduce the value of money, unless interest rates are higher thaninflation. And the higher inflation gets, the less chance there is that savers will see any real return on their money.