If There Is Inflation, Then a Firm That Has Kept

question 54

Multiple Choice

If there is inflation, then a firm that has kept its price fixed for some time will have a

• A)high relative price.Relative-price variability rises as the inflation rate rises.
• B)high relative price.Relative-price variability falls as the inflation rate rises.
• C)low relative price.Relative-price variability rises as the inflation rate rises.
• D)low relative price.Relative-price variability falls as the inflation rate rises.

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Definitions:

Cold War

A period of geopolitical tension between the Soviet Union and the United States, along with their respective allies, from the end of World War II in 1945 until the collapse of the Soviet Union in 1991, characterized by threats, propaganda, and other measures short of open warfare.

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