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A low inflation rate is preferred because

low inflation prevents economic growth

low inflation indicates steady growth

high inflation encourages investment

high inflation promotes economic security

User Stillanoob
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2 Answers

2 votes

Answer:

Low inflation indicates steady growth

User Seda
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A low inflation rate is preferred because it indicates steady growth. It makes more appealing or convincing to the people since low inflation rate are usually low during periods of low inflation in order to maintain the profit. I hope I answered your question. 
User Arkaha
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