Which of the following is most important for the achievement of long-term prosperity and strong economic growth?
A) expansionary monetary policy
B) expansionary fiscal policy
C) price stability
D) a balanced federal budget

Question

Quizplus · Accepted Answer

Price stability is crucial for creating an environment that encourages investment and long-term economic growth. High inflation rates can destabilize the economy, decrease consumer purchasing power, and decrease investment. Maintaining low and stable inflation rates will encourage savings, investment, and economic growth. Expansionary monetary and fiscal policies can have short-term benefits but may lead to long-term damage to the economy, such as inflation or debt accumulation. A balanced federal budget is also important for maintaining stability and avoiding a potential debt crisis, but it is not the most crucial factor for achieving long-term prosperity and strong economic growth.

Which of the Following Is Most Important for the Achievement