Variable inflation rates may be more costly socially than low but predictable rates of inflation.

Question

Quizplus · Accepted Answer

Variable inflation rates can lead to uncertainty and confusion for both consumers and businesses, making financial planning and decision-making difficult. This can cause economic instability and social costs such as job losses and decreased confidence in the economy. Low but predictable rates of inflation allow for more stable economic conditions and better planning for the future.

Variable Inflation Rates May Be More Costly Socially Than Low