Economists study the link between money and inflation because:
A) they want to understand how to keep inflation low and stable.
B) economists believe that inflation in the 3-6% range is healthy for an economy.
C) as prices increase money becomes more valuable.
D) the Fed needs to increase the money supply as prices increase.

Question

Quizplus · Accepted Answer

Economists study the link between money and inflation to understand how to keep inflation low and stable. This is important because high inflation can erode the value of money and lead to economic instability.

Economists Study the Link Between Money and Inflation Because