The U.S.goal for price stability:
A) Is an inflation rate of 3 to 6 percent.
B) Is an inflation rate of zero or less.
C) Changes each year based on economic performance.
D) Is an inflation rate of fewer than 3 percent.

Question

Quizplus · Accepted Answer

The U.S. goal for price stability is an inflation rate of fewer than 3 percent. This has been the Federal Reserve's long-term goal since the 1990s. A higher inflation rate can lead to a decrease in the purchasing power of the currency and can be harmful to the overall economy.

The U.S.goal for Price Stability