If there is inflation, "then a firm that has kept its price fixed" for some time will have a low relative price. Relative-price variability rises as the inflation rate rises.
Option C
Explanation:
Inflation is a mechanistic explanation of the rate by which, through a time period, the median level of prices of a chosen product and service basket rises in one economy.
When inflation happens, "a company that has kept its price set" will then have a relative low price for some time.
Depending on the circumstances perspective, inflation can be seen positively or negatively.
Those who have tangible assets, such as land or products, may like inflation, which raises their assets ' worth
Money investors may not like inflation, because the worth of their cash holdings is diminished.
