Question

How does price stability affect social stability a. Price stability improves social stability by fighting adverse effects of inflation b. Price nd social are not related c. Price stability reduces social stability by decreasing peoples wealth D. Price stability has a negative effect as it involves using the wealth of the rich to help the poor?

Answer 1

Answer:

Price stability improves social stability by fighting adverse effects of inflation.

Explanation:

Economic stability is essential for a healthy society to keep evolving. Economic crises, of distinct gravity, negatively impact people's lives. A special problem involving economic crises is the inflationary phenomenon. Inflation erodes purchasing power, causing prices to rise in an irrational way, which can lead the economy to collapse. In turn, a collapsing economy causes a serious social imbalance. Therefore, financial stability is a prerequisite for a balanced society.