One of the goals of the federal reserve is price stability. for the fed to achieve this goal,

1 answer:

7 0

One of the goals of the federal reserve is price stability. For the Fed to achieve this goal, the rate of inflation should be low, such as 1% to 3%, and should be fairly consistent.

When an organization is wanting to find price stability, they are meaning they want to avoid inflation and deflation. Although it's very hard to have no deflation or inflation, 1-3% is a low number that they are okay with. Inflation is a rise in the price whereas deflation is a decrease in the price.

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One of the goals of the federal reserve is price stability. for the fed to achieve this​ goal,

One of the goals of the federal reserve is price stability. for the fed to achieve this goal,