Question

A healthy economy can usually sustain a ___% inflation rate?

A. 10%
B. 1%
C. 2%
D. 4%

Answer 1

C. 2%

Step-by-step explanation:

Understanding Inflation

Inflation is often used to describe the impact of rising oil or food prices on the economy. For example, if the price of oil goes from $75 a barrel to $100 a barrel, input prices for businesses will increase and transportation costs for everyone will also increase. This may cause many other prices to rise in response.