when inflation falls, people make less frequent trips to the bank and firms make less frequent price…
when inflation falls, people make less frequent trips to the bank and firms make less frequent price changes. make less frequent trips to the bank while firms make more frequent price changes. make more frequent trips to the bank while firms make less frequent price changes. make more frequent trips to the bank and firms make more frequent price changes.
Answer
Brief Explanations:
When inflation is low, the cost of holding money (such as the loss of purchasing - power due to inflation) is reduced. So people don't need to go to the bank as often to convert non - cash assets into cash. Also, firms face less need to adjust prices frequently as the general price level is more stable.
Answer:
make less frequent trips to the bank and firms make less frequent price changes.