Most Economists Agree That Modest Inflation Is Desirable Over Zero

question 72

Multiple Choice

Most economists agree that modest inflation is desirable over zero inflation because:

• A) it helps firms to more easily adjust real wages.
• B) it allows a margin of error for those deciding on the money supply.
• C) it allows the Fed to more easily engage in expansionary monetary policy.
• D) All of these statements are true.

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