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7. Typically, the inflation rate does not cause problems for the economy when it is between _____.

User AntonioMO
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2 Answers

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I believe that...between 1% to 3% is considered low and does not cause a problem in the economy, but over 5% inflation rate is unstable.
Hope this helps!

User Roel Veldhuizen
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6 votes

Answer:

2 to 3, is the right answer.

Step-by-step explanation:

The inflation rate 2 to 3 does not harm the economy of a country. It is beneficial for an economy because with such inflation rate consumers are induced to buy commodities. But if the inflation rate (the high rate shows high prices of the commodities) will be high then it will harm the economy because consumers will not buy commodities.

User Asbah Riyas
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