High Volatility in the Inflation Rate Can Result In

question 136

Multiple Choice

High volatility in the inflation rate can result in:

• A) improper allocation of resources.
• B) sudden changes in output.
• C) low volatility in the CPI.
• D) deflation.

---

Definitions:

Lava Dome

A roughly circular mound-shaped protrusion resulting from the slow extrusion of viscous lava from a volcano.

Lava Flow

Molten rock that moves over the ground surface during a volcanic eruption.

Lava Fountain

A spectacular event where lava is forcefully ejected into the air through a vent during a volcanic eruption.

Pyroclastic Column

A dense, vertical cloud of hot volcanic ash, gas, and debris that rises from an explosive eruption.