An added benefit of low levels of inflation is that it allows for the possibility of

Name: An added benefit of low levels of inflation is that it allows for the possibility of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Low levels of inflation allow for the possibility of negative real interest rates. This means that even if nominal interest rates are low, they can still be higher than the rate of inflation, resulting in a positive return for savers. This can encourage savings and investment, which can promote economic growth.

An Added Benefit of Low Levels of Inflation Is That