A stable monetary environment will typically lead to
A)inflation.
B)producers and consumers better coordinating their decisions through markets.
C)independence of central banks.
D)increased trade deficits and limited budgets deficits.

Question

A stable monetary environment will typically lead to
A)​inflation.
B)​producers and consumers better coordinating their decisions through markets.
C)​independence of central banks.
D)​increased trade deficits and limited budgets deficits.

Quizplus · Accepted Answer

A stable monetary environment provides certainty and predictability which allows producers and consumers to make better decisions based on market signals. This leads to more efficient allocation of resources, higher levels of economic growth, and greater prosperity.

A Stable Monetary Environment Will Typically Lead to