One of the goals of the Federal Reserve is price stability. For the Fed to achieve this goal,

Business

1 answer:

rewona [7]3 years ago

5 0

Answer:

The correct answer is option C.

Explanation:

One of the goals of the federal reserve banks is to have price stability in the economy. Though price stability does not imply zero inflation. A small level of inflation is good for economy as it helps in growth of production.

So in order to acheive the goal of price stability, the rate of inflation should be low such as 1-3% and it should be consistent.

Very high inflation is harmful for the economy as it erodes the real income and wealth. Deflation is also not good for economy as it causes reduction in production and employment

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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,