One of the goals of the federal reserve is price stability. for the fed to achieve this goal,
a. the level of unemployment should be low, less than 6%, and the inflation rate should be near zero percent.
b. prices should not be increasing and the inflation rate should be near zero percent.
c. the rate of inflation should be low, such as 1% to 3%, and should be fairly consistent.
d. the inflation rate should be consistent but the rate of inflation can be zero, low (such as 1-3%), or high (such as 8-10%).

Question

01-04-2018
Business

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One of the goals of the federal reserve is price stability. for the fed to achieve this goal,
a. the level of unemployment should be low, less than 6%, and the inflation rate should be near zero percent.
b. prices should not be increasing and the inflation rate should be near zero percent.
c. the rate of inflation should be low, such as 1% to 3%, and should be fairly consistent.
d. the inflation rate should be consistent but the rate of inflation can be zero, low (such as 1-3%), or high (such as 8-10%).

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MrsTriplet MrsTriplet · Answer 1 · 2018-04-12T01:50:28+02:00

One of the goals of the federal reserve is price stability. For the Fed to achieve this goal, the rate of inflation should be low, such as 1% to 3%, and should be fairly consistent.

When an organization is wanting to find price stability, they are meaning they want to avoid inflation and deflation. Although it's very hard to have no deflation or inflation, 1-3% is a low number that they are okay with. Inflation is a rise in the price whereas deflation is a decrease in the price.