Question

4. For what development price rise along with stability is beneficial ?​

Answer 1

The benefits of price stability

This in turn allows the market to allocate resources more efficiently. If prices are stable, inflation risk premiums in financial markets go down, which means that real interest rates go down as well. Lower interest rates, in turn, increase the incentives to invest.

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Answer 2

Answer:

generally increase in price results in increasing profit of organizers and producers because of undecided profit they get opportunities to set up

new production units. profit amount increases when production cost is less than price rise, so the producer gets encouragement for new investment because of these reason price rise along with stability is beneficial.