Price Stability Is Desirable Because

question 40

Multiple Choice

Price stability is desirable because

• A)inflation creates uncertainty,making it difficult to plan for the future.
• B)everyone is better off when prices are stable.
• C)price stability increases the profitability of the Fed.
• D)it guarantees full employment.

---

Definitions:

Reciprocal Relationship

A mutual or two-sided relationship where both parties benefit, contribute, or are influenced by each other.

Psychological State

The mental condition of a person at a given time, encompassing emotions, thoughts, attitudes, and feelings.

Permanent State

A condition or status that does not change over time and remains constant indefinitely.

Despair

A profound sense of hopelessness, often accompanied by a loss of motivation and decreased emotional well-being.