Final answer:
A person concerned with price stability would look to control an increase in prices. This is crucial to protect the buying power of fixed-income recipients like retirees and to maintain economic balance.
Step-by-step explanation:
A person most concerned with price stability is likely to focus on controlling c. An increase in prices. Price stability refers to preventing significant shifts in prices, either upward (inflation) or downward (deflation). For example, retirees who depend on fixed incomes such as private company pensions are particularly vulnerable to inflation because their income does not increase over time. Inflation can erode the purchasing power of their income as the cost of living rises.
Social Security adjustments, on the other hand, can impact savings behavior and the supply of financial capital in financial markets. If Social Security payments are expected to increase along with inflation, individuals might save less for retirement, assuming their future needs will be met by these payments. However, this might result in a leftward shift in the supply of financial capital, impacting the broader economy.