Top Answer
User Avatar
Wiki User
Answered 2009-03-08 15:28:39

Because it provides stability and it is easier to predict. This makes it easier for business to plan (especially banks) what they will do in the future. Uncertainty is sometimes just as bad as a shrinking economy.

User Avatar

Your Answer

Related Questions

Too much inflation will ruin the economy but small levels of inflation will spur growth. Inflation is very harmful to any economy because it can ruin the economy's development and growth and this is not suppose to be. Inflation is also very harmful to any economy because the people living in that economy might not survive the situation and this is when you see that an economy is affected and if nothing is done to it, it can cause an economy to collapse.

Inflation can be harmful if individuals' incomes do not increase at the same rate as rising prices, because then the consumers buy less. Economic contraction is harmful because companies begin to lay off workers, and the economy slows down.

Yes high inflation always harm ppl. In high inflation there is an inc in prices of all goods. Poor become more poor. Basic necessaities are more dearer. But consequences of inflation re less harmful than deflation. Both inflation and defltion are harmful for the economy . A balance between both is a balanced econony

Inflation at a very low level will be harmful for the economy because when the low infaltion will prevail in the economy purcahsing power of the people will get high and they will demand for more goods increase in demand will leads to increase in production in the short run it will be profitable but in the long run it will be harmful for the economy because in the lon run factors of production will be repletion and will lead to lower production and leads to economic crised. in the long run factors of production decides the price of the products not the demand of the products.

equality is more important than efficiency. Is that a positive or normative statement?

what can be harmful to the economy is when the non renewable resources are finished

Inflation is the most harmful to those that cannot afford it. Since it can cause people to lose money, it can be devastating to individuals and businesses that already have little money.

homeostasis maintains a constant or nearly constant body environment to save it from the harmful effects of fluctuations in the external enviroment.

First of all, being bulimic is harmful because you will eventually starve to death if you persist in bulimia. Second of all, your teeth will decay because of the constant throwing up. Bulimia is VERY harmful.

For the vehicle owner it saves money. For the environment, it means less harmful emissions.

as the population increases it effects the growth or economy of a country in many ways. It leads to formation of slums and poor food supply.

The primary reason for government to intervene in a free enterprise economy is simple. The government deemed something to be harmful or deconstructive.

The atmosphere keeps earth at constant temperature. It is due to ozone protection which also avoids global warming.

It is not harmful at all! Animal waste is also known as fertilizer. Milorganite is made from human waste for example. Farms will take the feces and spread this material in fields to help encourage plant growth. This reduces overall food costs and helps our environment and the economy, so the short answer is that it helps make the economy and environment a better place.

yes, especaily if you dont get off your lazy butt and clean it up

They can't bite or otherwise directly hurt a person, but some species can be agricultural pests, which is harmful to our economy.

Yes. He believed that the government should do as little as possible to interfere with business.

Dogs can be harmful to humans in a few ways, but most of that has to do with the dogs background with humans. If a dog has not had positive or constant contact with humans, the dog can become aggressive towards any human that it hasn't been in contact with.

Adolf Hitler was a vicious dictator, but he did make some contributions. Hitler discovered that tobacco is harmful to the human body, and boosted the German economy.

Vinegar is only harmful to those with respiratory problems such as asthma, sarcoidosis, S.A.R.S and a few others. When boiled individuals with the listed diseases will experience constant illness and a weakend immune system. Overexposure to vinegar in individuals with the listed sicknesses will cause serious damage!

All Microbes are not harmful. All virus are harmful. Some bacteria are harmful

"harmful" doesn't have a comparative and superlative form. Instead, you would say "more harmful" or "most harmful."

lion are useful and harmful

Pros: state and private ownership maximizes social welfare competition to obtain products Cons: Taxes harmful products being made

Copyright ยฉ 2021 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.