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Which of These Is Not a Reason Why Economies Should

Question 95

Multiple Choice

Which of these is not a reason why economies should aim for 2 to 3 percent inflation?


A) It helps firms to more easily adjust real wages
B) It allows a margin of error for those deciding on the money supply
C) It allows the Fed to more easily engage in expansionary monetary policy
D) It increases the real wage of workers

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