A reduction in the inflation rate would make relative prices
a. less variable, making it more likely that resources will be allocated to their best use.
b. less variable, making it less likely that resources will be allocated to their best use.
c. more variable, making it more likely that resources will be allocated to their best use.
d. more variable, making it less likely that resources will be allocated to their best use.
a
Economics
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When economists speak of normal goods they mean goods for which
A) the demand curve slopes downward. B) marginal utility is positive. C) marginal utility decreases as consumption increases. D) demand decreases when incomes fall.
Economics
Refer to Figure 9.3. If the market is in equilibrium, total consumer surplus is
A) $1. B) $3. C) $200. D) $400. E) $600.
Economics