Higher Inflation Makes Relative Prices

question 74

Multiple Choice

Higher inflation makes relative prices

• A)more variable,making it more likely that resources will be allocated to their best use.
• B)more variable,making it less likely that resources will be allocated to their best use.
• C)less variable,making it more likely that resources will be allocated to their best use.
• D)less variable,making it less likely that resources will be allocated to their best use.

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Definitions:

Identification

The process by which an individual aligns themselves with the values, beliefs, and practices of another person or group, often as a role model.

Sublimation

A defense mechanism in which socially unacceptable impulses are transformed into socially acceptable actions or behaviors.

Displacement

A defense mechanism where an individual shifts negative feelings from the original source of distress to a less threatening person or object.

Regression

A defense mechanism leading an individual to revert to a less mature state of mental development in response to stress or conflict.