Most economists agree that the best rate of inflation for a stable economy would be about:
A)zero.
B)two percent.
C)five percent.
D)seven percent.

Question

Quizplus · Accepted Answer

Most economists agree that a moderate and stable inflation rate of around two percent is best for the economy. This allows for some economic growth and prevents stagnation, without causing too much disruption or uncertainty in the market. Zero inflation can lead to deflation, which can be equally damaging to the economy. Higher rates of inflation like five or seven percent can cause instability and uncertainty in the markets, leading to reduced investment and growth.

Most Economists Agree That the Best Rate of Inflation for a Stable