A nations inflation rate is 100 percent Managers can expect
A nation’s inflation rate is 100 percent. Managers can expect:
| (a) Export prices to foreign markets to double |
Solution
When a country inflation rate is 100%, it means prices of goods and services have doubled, so it means export price for foreign markets have doubled.
Since prices of goods and services have increased by double, so there are needed double quantity of money in the economy, so government move to double the number of national currency units per dollar or euro.
It means option a and d are effect of double inflation rate.
Hence option f is the correct answer.
Option f; just a and d.
