Inflation can cause a misallocation of resources because
A) firms have to change their price labels at unusual times.
B) inflation doesn't proceed evenly which means that people have a difficult time determining when a price change signals a change in relative prices.
C) the nominal rate of inflation doesn't equal the real rate of inflation.
D) people are encouraged to borrow too much.
B
You might also like to view...
The chemicals used to produce methamphetamine include:
a. sinus medicine. b. drain cleaner. c. engine starting fluid. d. alkaline from batteries. e. all of the above.
Matching
1. Asif Ali Zardari a. Taliban 2. Baitullah Mehsud b. Kashmiri militant group 3. Kahalistan c. al Qaeda 4. Masood Azhar d. Punjab area 5. Mullah Omar e. Pakistani Taliban 6. Al-Faran f. Benazir Bhutto 7. Ayaman-al-Zawahiri g. The Jaish-e-Mohammed (JEM, the Army of Mohammed),
The process by which a group's beliefs, values, attitudes, and norms are inculcated into each member's psyche is called
a. training b. familiarization c. socialization d. education
In Latino gang writings, the term rifa means _____
Fill in the blank(s) with correct word