During Periods When the Inflation Rate Fluctuates Widely,_____

question 8

Multiple Choice

During periods when the inflation rate fluctuates widely,_____.

• A)the nominal interest rate and the real interest rate are identical
• B)all money prices rise at the same rate,causing relative prices to increase
• C)suppliers link the selling prices of their goods to the overall inflation rate
• 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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