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How Might Low Inflation Levels in the General Economy Affect

Question 38

Multiple Choice

How might low inflation levels in the general economy affect a company like McDonald's?


A) McDonald's will pay much higher prices for supplies and will charge customers more for its products.
B) McDonald's will pay higher prices for supplies and will charge customers more for its products.
C) McDonald's will pay relatively constant prices for supplies, but will be unable to increase the price paid by customers.
D) McDonald's will pay relatively constant prices for supplies and will charge customers more for its products.
E) McDonald's will pay higher prices for supplies, but will be unable to increase the price paid by customers.

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