Question

Typically, the inflation rate does not cause problems for the economy when it is between _____. 1 and 3 percent 1 and 4 percent 2 and 4 percent 2 and 3 percent

Answer 1

1% and 3%

Step-by-step explanation:

When the inflation rate stays low and averages between 1 and 3 percent, it does not typically cause problems for the economy. Businesses and governments can plan in this environment. However, economists have noted that when the inflation rate exceeds 5 percent, the inflation rate itself becomes unstable and unpredictable. This makes planning very difficult.

Answer 2

My answer would be 2 and 3 percent. This is a reasonable range. Given that the question did not specify what country the economy is found or the conditions affecting it, this would be a reasonable estimate to chose from.