During Periods When the Inflation Rate Fluctuates Widely

question 194

Multiple Choice

During periods when the inflation rate fluctuates widely,

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

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