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g Higher inflation makes relative prices a. more variable, making it more likely that resources will be allocated to their best use. b. more variable, making it less likely that resources will be allocated to their best use. c. less variable, making it more likely that resources will be allocated to their best use. d. less variable, making it less likely that resources will be allocated to their best use.

Respuesta :

Answer:

The correct answer is option b.

Explanation:

Inflation decreases the purchasing power of money. In the case of high inflation, the prices have to be changed frequently, to keep them indexed with the inflation rate.  

The more variable the prices are the more difficult it is to efficiently allocate resources as the price keeps changing.  

Inflation distorts market price signals, thus leading to inefficient allocation of resources.

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