Relative price changes indicate
A)all prices move together.
B)all exchange rates move together.
C)some prices increase faster than others.
D)exchange rates appreciate faster than prices change.

Question

Quizplus · Accepted Answer

Relative price changes refer to the changes in the prices of different goods and services in comparison to each other. Therefore, it is possible for some prices to increase faster than others, indicating differential changes in relative prices. Hence, option C is the correct answer. Options A, B, and D are incorrect, as they do not accurately reflect the concept of relative price changes.

Relative Price Changes Indicate