Question

Drag each label to the correct location on the image. Match the given situations to the relevant actions taken by individuals. Joan wants to purchase goods from an inflationary market. Sylvia is a consumer and she realizes that there will be an increase in her purchases this month. Agnes’s bank has increased the interest rate. Alex’s business shows a decline in transactions for two months. Jim realizes that prices of goods and services have gone down.

Answer 1

Individuals may take different actions based on the given situations in an inflationary market, such as purchasing unaffected goods, buying in bulk, saving/investing more, assessing business performance, and capitalizing on lower prices.

Step-by-step explanation:

In an inflationary market, individuals take certain actions based on the given situations:

• Joan: In an inflationary market, Joan may consider purchasing goods that are unaffected by inflation, such as real estate or stocks.
• Sylvia: If Sylvia expects an increase in her purchases this month, she may choose to buy in bulk or take advantage of any discounts or promotions available.
• Agnes: When Agnes's bank increases the interest rate, it may incentivize her to save more or invest in higher-yielding investments.
• Alex: If Alex's business shows a decline in transactions for two months, he may need to assess the reasons for the decline and make appropriate adjustments, such as improving marketing strategies or diversifying products/services.
• Jim: If Jim realizes that prices of goods and services have gone down, he may consider making purchases at lower prices or capitalizing on any potential business opportunities.