In countries such as El Salvador or Ghana, tax revenue is extremely limited due to the lack of an adequate tax-collection agency. These countries most likely will issue bonds and sell them to the central bank in order to cover government expenditures. Thus, the lack of:
A) government intervention may lead these economies to inflation and poor economic performance.
B) property rights and laws may lead these economies to inflation and poor economic performance.
C) a banking system may lead these economies to inflation and poor economic performance.
D) well-developed bond markets may lead these economies to inflation and poor economic performance.
Correct Answer:
Verified
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