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Why would stable prices be a goal of the US government? A. Inflation hurts borrowers. B. The government doesn't want to pay high prices. C. Inflation is harmful to the economy as a whole. D. High unemployment is harmful.

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User Narabhut
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2 Answers

4 votes
I may be wrong but i believe its the letter C...
answered
User Benj
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4 votes

the answer is: C. Inflation is harmful to the economy as a whole

inflation shows that the producers in the country is not producing enough to fulfill the demand in the market. This rise the average prices of products/services.

If the price continue to rise , a lot of consumers would stop buying the products since they cannot afford it. This would lead to an increase in unemployment rate since companies would not be able to produce enough income to keep their employees.

answered
User Trikker
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