Suppose there is uncertainty about the amount of inflation that will occur during the “Produce” period, between the signing of contracts and the collection of sales revenue. Label each item as being based, ultimately, on a worry that inflation will be higher than expected or that it will be lower than expected.
Will come true if inflation is higher than expected
The workers worry they agreed to lower wages than they should have.
The lender worries that the loan rate is too low.
Will come true if inflation is lower than expected
The business owner worries about not being able to charge high enough prices.
The business owner worries that the loan rate is too high.