The General Manager (GM) of a car dealership is working on a three year business plan. The GM expects inflation to rise over the next three years.

a. How will higher inflation affect the number of vehicles the dealership can sell?

b. Based on the GM’s inflation expectation what type of loan should the dealership arrange with its bank in order finance its inventory of automobiles?

Answer rating: 100% (QA)

a Higher inflation can affect the number of vehicles the dealership can sell in a few ways 1 Increased Costs Inflation typically leads to higher costs ... View the full answer