When consumer prices are increasing at a steady but reasonable rate this is considered a healthy level of D) inflation.
Inflation is the rate of increase in prices over a period of time. Inflation is usually a broad measure, such as a general rise in prices or an increase in the cost of living in a country.
Although high inflation is generally viewed as detrimental, some economists believe low inflation could boost economic growth. The opposite of inflation is deflation, where prices tend to fall. The Federal Reserve is targeting 2% inflation based on the Consumer Price Index (CPI).
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