Rekall Autos Inc., an automobile company based in the country of Springfield, made a capital investment of $400,000 to set up production units and distribution channels in the country of Uganda from where it plans to access the Uganda market. Such investments are best known as

Ans C. the inflation rate

The inflation rate is the rate at which the general level of prices for goods and services is rising. If the price of a product is $X today and after a year if the price of that product is more than $X then it could be due to inflation effect, keeping other factors constant. Inflation leads to increase in price of products and services leading to decrease in their demands.