Inflation Makes It Difficult to Distinguish Relative Price Changes from Changes

question 2

Multiple Choice

Inflation makes it difficult to distinguish relative price changes from changes in the general level of prices. Consequently, inflation ________ the efficiency of the market system.

• A)increases
• B)decreases
• C)does not change
• D)may either increase or decrease

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Definitions:

Website Operators

Individuals or entities that manage and control the operation of a website, responsible for its maintenance and content.

Identity Theft

When criminals obtain personal information that allows them to impersonate someone else in order to use their credit to obtain financial accounts and make purchases.