Which scenario pertains to an economic risk that would deter a firm from making a long-term economic investment? (1 point)

Question

• Bond yield increasing, deterring people from wanting to buy more bonds.
• Deflation causing an increase in the price of raw materials, leading to a company to delay their expansion.
• Inflation causing an increase in the price of raw materials.
• A firm's stock price rising causing them to wait to sell more stocks to fund their new endeavors.

Answer 1

Deflation causing an increase in the price of raw materials, leading to a company to delay their expansion.