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Although Rapid Money Growth Causes Inflation,some Countries Keep Increasing Their

Question 74

Multiple Choice

Although rapid money growth causes inflation,some countries keep increasing their money growth.We can explain this by noting that


A) inflation in those countries is low enough to be ignored by the policymakers.
B) printing money is the only and easy way to finance the government expenditures in those countries.
C) in rich countries inflation does not hurt the economy.
D) policymakers do not know the relationship between inflation and money growth.

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