Question

Relative-price variability Group of answer choices rises with inflation, leading to an improved allocation of resources. rises with inflation, leading to a misallocation of resources. falls with inflation, leading to an improved allocation of resources. falls with inflation, leading to a misallocation of resources.

Answer 1

Correct option is rises with inflation, leading to an improved allocation of resources

Step-by-step explanation:

Relative price variability has a direct relation with Inflation and an increase in Inflation leads to increased relative price variability and effective resources allocation.