Which of the following is a potential benefit of inflation?

A. Higher unemployment
B. Higher prices
C. Less government revenue
D. More business profits



Answer :

Final answer:

Inflation can benefit businesses by increasing profits through strategic financial management.


Explanation:

More business profits is a potential benefit of inflation. Businesses can take advantage of inflation by delaying payments in inflated dollars while collecting revenues promptly, leading to increased profits. However, this strategy can result in a tradeoff where less focus is placed on improving products or services.


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