Inflation ________ Price Volatility and ________ Allocative Efficiency

question 60

Multiple Choice

Inflation ________ price volatility and ________ allocative efficiency.

• A) decreases; increases
• B) decreases; leaves unchanged
• C) increases; leaves unchanged
• D) increases; decreases
• E) leaves unchanged; increases

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Definitions:

Villi

Small finger-like projections that protrude from the epithelial lining of the intestinal wall, increasing surface area for nutrient absorption.

Fingerlike Projections

Extensions from a surface or body that resemble fingers, often used to increase surface area for absorption or sensation in biological systems.

Mucosa

The moist, inner lining of some organs and body cavities, such as the nose, mouth, lungs, and stomach.

Sodium

A chemical element symbolized by Na, essential in the body for maintaining normal fluid balance and nerve transmission.