Maximum employment and moderate long-term interest rates are best achieved with
A) high and stable inflation rates.
B) high and variable inflation rates.
C) high real interest rates.
D) high short-term interest rates.
E) price stability.

Question

Quizplus · Accepted Answer

Price stability, or low and stable inflation rates, is the best choice for achieving maximum employment and moderate long-term interest rates. High and stable inflation rates can lead to uncertainty and instability in the economy, while high real or short-term interest rates can discourage investment and growth. Therefore, maintaining price stability is key for promoting a healthy and sustainable economy.

Maximum Employment and Moderate Long-Term Interest Rates Are Best Achieved