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The Most Likely Explanation for the High Inflation Rates That

Question 79

Multiple Choice

The most likely explanation for the high inflation rates that countries like Belarus have suffered is


A) that large inflows of foreign funds increase the money supply, causing inflation.
B) that without inflation, these countries would be unable to achieve high rates of growth.
C) that borrowing from the Central Bank is the most expedient method of funding the government's expenditures.
D) that the flood of financial innovations has increased liquidity in these nations' economies.

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