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27 August, 10:27

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.

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  1. 27 August, 11:56
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    Correct option is rises with inflation, leading to an improved allocation of resources

    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.
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