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2) explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1–7% regularly.
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2) explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1–7% regularly.
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Oct 27, 2018
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2) explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1–7% regularly.
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Element Zero
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A varying inflation rate will be difficult for people to cope with since the price of goods and incomes will not vary as fast as the inflation rate will. A stable inflation rate will allow for adaptations in the economy.
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