Which of the following are reasons why the Fed targets an inflation rate greater than 0%? Inflation enables the labor market to function more smoothly. enables the Fed to more effectively fight recessions. helps avoid the risk of deflation. at 0% keeps the purchasing power of c

MACROECONOMICS FOR TODAY
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ISBN:9781337613057
Author:Tucker
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Chapter7: Inflation
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Which of the following are reasons why the Fed targets an inflation rate greater than 0%?
Inflation
enables the labor market to function more smoothly.
enables the Fed to more effectively fight recessions.
helps avoid the risk of deflation.
at 0% keeps the purchasing power of consumers stable.
Transcribed Image Text:Which of the following are reasons why the Fed targets an inflation rate greater than 0%? Inflation enables the labor market to function more smoothly. enables the Fed to more effectively fight recessions. helps avoid the risk of deflation. at 0% keeps the purchasing power of consumers stable.
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