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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19-10-2019
Business

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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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AbsorbingMan AbsorbingMan · Answer 1 · 2019-10-19T08:33:14+02:00

Answer:

b. more variable, making it less likely that resources will be allocated to their best use.

Explanation:

The answer is

b. more variable, making it less likely that resources will be allocated to their best use.

Higher inflation always increases price variability because in order to keep the inflation rate incorporating, the price level keeps on changing. And therefore as a result, the resources does not get allocated efficiently.

Thus the answer for Higher inflation makes relative prices is option --

b. more variable, making it less likely that resources will be allocated to their best use.