The most desirable inflation rate is the rate that
A)Equals the official goal of 3 percent.
B)Has the least effect on the behavior of companies,investors,consumers,and workers.
C)Maximizes the "wealth effect" of inflation.
D)Coincides with an unemployment rate of 0 percent.

Question

Quizplus · Accepted Answer

A moderate and predictable inflation rate that has minimal impact on market behavior is generally seen as the most desirable. This allows businesses, investors, consumers, and workers to plan accordingly without the need for constant adjustments to compensate for inflation.

The Most Desirable Inflation Rate Is the Rate That