Why Do Policymakers Have the Goal of Stable Prices

question 19

Multiple Choice

Why do policymakers have the goal of stable prices?

• A) Stables prices always keep the economy in expansion
• B) Firms make too much money when prices are rising
• C) Inflation is always associated with wars
• D) Inflation imposes costs on society
• E) Inflation is always associated with trade deficits

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A condition or feeling experienced when a person perceives that demands exceed the personal and social resources the individual is able to mobilize.

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