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5 August, 09:26

Which is not a reason why policymakers avoid spikes and slumps in product prices?

The spikes and slumps can inhibit competition among businesses.

The spikes and slumps can damage industries.

The spikes and slumps can put a strain on consumers.

The spikes and slumps can cause market instability.

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  1. 5 August, 09:43
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    The correct answer is The spikes and slumps can inhibit competition among businesses.

    This is not a reason because the spikes and slumps can actually make the competition even greater, and when you're in the manufacturing and trading business you don't want competition since the competition will affect your earnings, and you want to maximize your earnings.
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