When Inflation Causes Relative-Price Variability Consumer Decisions

Multiple Choice

When inflation causes relative-price variability consumer decisions,

A) are distorted and the ability of markets to efficiently allocate factors of production is impaired.
B) are distorted, but markets are still able to efficiently allocate factors of production.
C) are not distorted, but the ability of markets to efficiently allocate factors of production is impaired.
D) are not distorted and markets are still able to efficiently allocate factors of production.