High Rates of Inflation Discourage Research and Development by

Multiple Choice

High rates of inflation discourage research and development by

A) making long-run forecasting more hazardous, increasing the risk on longer-term programs.
B) raising the price of bonds sold to finance new investment.
C) forcing the government to lower taxes to fight inflation.
D) reducing the amount of discretionary money households and businesses have to spend on research and development.
E) encouraging investors to seek opportunities in areas where the return is high but the outcome is less predictable than in basic research.