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7 November, 03:06

In order to achieve price stability, inflation must be zero.

a. True

b. False

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Answers (1)
  1. 7 November, 03:51
    0
    False, inflation does not need to be zero to achieve price stability. Although the ideal rate of inflation is zero, that's likely not going to happen. Most record a low inflation rate of of 1% give or take, but not zero. The key factor in price stability is to have a low and consistent inflation rate over time.
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