During periods when the inflation rate fluctuates widely, _____.
a. the nominal interest rate and the real interest rate are identical
b. all money prices rise at the same rate, causing relative prices to increase
c. suppliers link the selling prices of their goods to the overall inflation rate
d. uncertainty about changes in relative prices causes a decrease in economic efficiency
e. all money prices increase at the same rate, leaving relative prices constant
Question 2
Discrimination raises the average wage of members of one group of workers in spite of laws that require equal pay for all workers.
a. True
b. False
Indicate whether the statement is true or false
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