(1) A former Federal Reserve official argued that at the Fed \"the objectives of

Question

(1) A former Federal Reserve official argued that at the Fed "the objectives of price stability and low long-term interest rates are essentially the same objective" This is true because A.stable prices reduce the value of money and therefore money is worth less in the future. B. stable prices make it easier to plan for the future, so expectations can be stable, which makes it less costly to make loans. C. stable prices create an environment in which it is difficult to plan for the future and more difficult to loan funs. D. none of the above.

Explanation / Answer

B. stable prices make it easier to plan for the future, so expectations can be stable, which makes it less costly to make loans.

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