2) explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1-7% regularly.

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Sawyer Mcneil

Social Studies

1 March, 04:34

2) explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1-7% regularly.

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Lucia Rios · Answer 1

A varying inflation rate will be difficult for people to cope with since the price of goods and incomes will not vary as fast as the inflation rate will. A stable inflation rate will allow for adaptations in the economy.