Why do policymakers have the goal of stable prices?
a. Stables prices always keep the economy in expansion
b. Firms make too much money when prices are rising
c. Inflation is always associated with wars
d. Inflation imposes costs on society
e. Inflation is always associated with trade deficits
D
Economics
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As the reserve ratio decreases, the money multiplier
a. increases. b. does not change. c. decreases. d. could do any of the above.
Economics
Why are the long-run effects of an increase in aggregate demand on price and output different from the short-run effects?
What will be an ideal response?
Economics