Which of the following is NOT a problem that may be associated with rapid,unsustainable growth in an economy?
A) An upward pressure on wages
B) An increase in inflationary pressures
C) An improvement in the current account of the balance of payments
D) A rise in interest rates

Question

Quizplus · Accepted Answer

Rapid, unsustainable growth in an economy may lead to an upward pressure on wages (A), increase in inflationary pressures (B), and a rise in interest rates (D). However, it is unlikely to result in an improvement in the current account of the balance of payments (C), as unsustainable growth is often associated with a higher demand for imports and a deterioration of the trade balance.

Which of the Following Is NOT a Problem That May