When all prices are increasing due to inflation:

A. price signals become more difficult to interpret.
B. price signals will be confused for quantity signals.
C. price signals are easier to interpret than if prices were decreasing.
D. prices do not send signals.

Answer: A. price signals become more difficult to interpret.

Economics

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One way to measure national debt over time is relative to: a. the cash flow of the banking system

b. the economy's production and income. c. credit sales of consumer durables over a year. d. national home sales in large cities. e. the economy's savings.

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Historically, which of the following has had the highest average annual rate of return?

a. corporate bonds b. money market mutual funds c. corporate stocks d. U.S. Treasury bonds

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