Because inflation undermines money's unit of account function, government policy will try to keep it:
A)at zero.
B)at a low rate.
C)negative.
D)at either a low or a negative rate.

Question

Quizplus · Accepted Answer

Inflation undermines money's unit of account function by eroding the value of money over time, making it difficult to compare values accurately. Governments aim to keep inflation at a low rate to maintain economic stability and preserve the purchasing power of the currency, rather than aiming for zero or negative inflation, which can have other negative economic consequences.

Because Inflation Undermines Money's Unit of Account Function, Government Policy