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.

Question

Quizplus · Accepted Answer

All of the statements mentioned in the options are true reasons why modest inflation is desirable over zero inflation.

Most Economists Agree That Modest Inflation Is Desirable Over Zero