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qwelly [4]
3 years ago
6

Why is inflation both good and bad how does the government try to control it?

Business
1 answer:
Kaylis [27]3 years ago
6 0
<span>Inflation is good because it keeps the economy growing as wages increase and demand for goods goes up, but if inflation gets high then the economy can become overheated when prices go up too fast and people can't afford goods. The Federal Reserve Bank, if you're in the USA, will then raise interest rates to make loans more expensive and rewarding people for not spending money, which slows down the economy back to a healthy state.</span>
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The answer is: A) All items that are included in M1 are included also in M2.

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I guess this question is about money supply.

The money supply is the total amount of money available in an economy. It includes:

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A. True

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