Speculation during periods of inflation can result in all of the following except
A)People buying resources for resale later,rather than using the resources for current production.
B)A movement inward from the production possibilities curve.
C)People buying gold,silver,jewelry,and the like instead of capital for production.
D)More resources going into the production process.

Question

Quizplus · Accepted Answer

During periods of inflation, speculation can lead to increased investment in production in order to take advantage of higher prices, rather than buying resources for resale later. This can result in more resources being used for current production rather than being held back for speculative purposes.

Speculation During Periods of Inflation Can Result in All of the Following