Answer:
Actually, an increase in inflation is likely to mean a rise in the cost of raw materials. Perhaps, workers are likely to demand higher wages to cover or cope with the higher cost of daily living. This rise in prices can also cause greater volatility and uncertainty. With firms uncertain about future costs, they may hold back from making investment decisions. Firms generally prefer a low and stable inflation rate. Also, with a inflation rate, firms may expect rising interest rates, which will increase cost of borrowing – another reason to hold back on investment. With higher inflation, firms may face menu costs (the cost of changing and updating prices). However, with modern technology this cost has diminished in importance – as it is easier for firms to update prices automatically.
Explanation:
The US reorganized it's economy to produce food, arms, and other goods to support the war effort. The Food Administration helped boost food production to feed both American troops and Allied troops fighting in the war. The Food Administration also encouraged citizens to plant their own "Victory Gardens" to raise their own food. People went without wheat on Mondays, and without meat on Tuesdays, saving the food for the men fighting in the trenches. The US was short on military supplies, at the time they entered WW1. The War Industries Board told factories what to produce and at what price. The War Labor Board helped settle workers disputes in order to prevent strikes and labor unrest, which would slow down production of needed supplies.
Answer:
c
Explanation:
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