Price stability is defined as ________.
A) low inflation
B) low and stable inflation
C) stable inflation
D) core inflation

Question

Quizplus · Accepted Answer

Price stability is generally understood to mean low and stable inflation. This means keeping inflation low enough to reduce uncertainty and maintain the purchasing power of currency, while also avoiding deflationary pressures that can cause a decline in economic activity. Simply having low inflation or stable inflation alone does not necessarily guarantee price stability.

Price Stability Is Defined as ________