In the article "The Fed's Inflation Target: Why 2 Percent?", David Wheelock of the St. Louis Fed notes 3 arguments people make for keeping inflation rates positive. These include: Question 32Answer a. The actual rate of inflation is probably lower than the measured rate of inflation b. Higher inflation is correlated with higher interest rates, allowing room for the Fed to cut interest rates when needed c. It is better to have low rates of inflation than for the economy to experience deflation d. Each of these answers is correct