Explain the costs and benefits of reducing inflation to zero


Question

1. Explain the costs and benefits of reducing inflation to zero. Which are temporary and which are permanent?

2. Explain how reducing a government budget deficit makes future generations better off. What fiscal policy might improve the lives of future generations more than reducing a government budget deficit?

3.Give three examples of how our society discourages saving. What are the drawbacks of eliminating these disincentives?

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Microeconomics: Explain the costs and benefits of reducing inflation to zero
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