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Question

As the goods are exchanged from one intermediary to the other, their prices _____.

A
deflate
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B
remain unchanged
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C
inflate
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D
any of the above
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Solution

The correct option is C inflate
Tradable commodities consist of basic goods used in commerce that are often interchangeable with other goods of the same type.
Trading of commodities is usually executed through future contracts on exchanges that standardize the quantity and minimum quality of the products traded.

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