What range of inflation rates do many economists currently believe is healthy?
A)2% to 4%
B)0% to 1%
C)3% to 5%
D)1% to 3%

Question

Quizplus · Accepted Answer

Many economists believe that a healthy inflation rate falls within the range of 1% to 3%. This rate allows for a stable economy while also promoting economic growth and preventing deflation. High inflation rates can lead to decreased purchasing power and lower standards of living, while very low or negative inflation can create an environment of stagnation and economic contraction. Many economists believe that an inflation rate of 1% to 3% is healthy as it indicates a growing economy but also maintains stable prices for consumers. A higher inflation rate can lead to decreases in purchasing power and a lower inflation rate can indicate slow economic growth.

What Range of Inflation Rates Do Many Economists Currently Believe