During Periods When the Inflation Rate Fluctuates Widely

question 148

Multiple Choice

During periods when the inflation rate fluctuates widely,

• A) all relative prices increase at the same rate, leaving money prices constant
• B) economic efficiency increases because decision makers pay closer attention to changes in money prices
• C) uncertainty about changes in relative prices causes a decrease in economic efficiency
• D) all money prices increase at the same rate, leaving relative prices constant

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