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When Inflation Causes the Absolute Prices of All Commodities to Rise,what

Question 13

Multiple Choice

When inflation causes the absolute prices of all commodities to rise,what happens to the relative prices of those commodities?


A) The relative prices also rise.
B) When absolute prices rise,the corresponding relative prices fall.
C) The relative prices are unaffected by changes in absolute prices.
D) No prediction can be made about changes in relative prices.

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