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Fluctuations in the inflation rate: a. benefit producers as it leads to an efficient allocation of resources and a reduction in the wages demanded by
Fluctuations in the inflation rate:
a. benefit producers as it leads to an efficient allocation of resources and a reduction in the wages demanded by workers.
b. increase economic efficiency as decision makers pay close attention to changes in price level.
c. complicate international transactions as the exchange rate varies with variations in the anticipated inflation rate.
d. decrease the opportunity cost of production and increase the aggregate output.
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