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How does price stability affect social stability?

A. Price stability improves social stability by fighting adverse effects of inflation.
B. Price stability and social stability are not related.
C. Price stability reduces social stability by decreasing people's wealth.
D. Price stability has a negative effect as it involves using the wealth of the rich to help the poor.

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Final answer:

Price stability improves social stability by fighting adverse effects of inflation.


Explanation:

Price stability improves social stability by fighting adverse effects of inflation. When prices are stable, it helps in maintaining a sense of security and predictability within society. This stability prevents sudden shifts in purchasing power and maintains economic balance.


Learn more about Price stability and social stability here:

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