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Which of the following types of inflation interferes with a company's ability to plan for the future?

a. Expected inflation
b. Galloping inflation
c. Creeping inflation
d. Unexpected inflation

User TDP
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1 Answer

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Final answer:

The type of inflation that most disrupts a company's future planning is unexpected inflation, as it is sudden and unpredictable in its effects. The correct answer is option: d. Unexpected inflation

Step-by-step explanation:

The type of inflation that interferes with a company's ability to plan for the future is d. Unexpected inflation. Unlike expected inflation, which businesses can plan for and incorporate into their future financial projections, unexpected inflation can have sudden and unpredictable consequences.

Businesses face considerable challenges when prices, wages, and interest rates do not adjust immediately or in synchrony with inflation, leading to problems such as blurred price signals and difficulties in long-term planning. Galloping inflation and hyperinflation can also be highly disruptive, but these are extreme and less common scenarios compared to the more frequently encountered unexpected inflation.

User Chickenchilli
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