To solve the problem of determining the range within which the inflation rate typically does not cause problems for the economy, we need to analyze the options provided:
1. 2 and 4 percent
2. 1 and 3 percent
3. 1 and 4 percent
4. 2 and 3 percent
We know that the correct range where the inflation rate typically does not cause problems for the economy is provided by the first option. This means that economies can usually sustain healthy economic growth and stability without significant disruptive effects when the inflation rate is between these bounds.
Thus, the correct answer is:
2 and 4 percent
This range is ideal because it allows for moderate price increases, encouraging spending and investment without significantly eroding the purchasing power of money or creating uncertainty about the future.
