Most Economists Agree That the Best Rate of Inflation for a Stable

question 69

Multiple Choice

Most economists agree that the best rate of inflation for a stable economy would be about:

• A)zero.
• B)two percent.
• C)five percent.
• D)seven percent.

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Definitions:

Maturity Date

The date on which a financial obligation must be repaid or settled in full.

Principal Repaid

The amount of a loan's principal that has been paid back to the lender, not including interest payments.

Face Value

The nominal or dollar value printed on a security, such as a bond or stock, representing its worth at issuance.

Interest Dates

Specific dates on which interest payments are made by the issuer of a debt instrument to the holders.