Higher inflation results in
A)more frequent price changes and increased variability of relative prices.
B)more frequent price changes and decreased variability of relative prices.
C)less frequent price changes and increased variability of relative prices.
D)less frequent price changes and decreased variability of relative prices.

Question

Quizplus · Accepted Answer

Higher inflation leads to more frequent price changes because businesses need to adjust their prices to keep up with rising costs. This increased frequency of price changes also leads to increased variability of relative prices, as different goods and services will be affected differently by inflation.

Higher Inflation Results in