During the 1990s, the United Kingdom experienced low levels of inflation while Turkey experienced high levels of inflation. What best explains the difference?
A) The United Kingdom was more industrialized than Turkey.
B) The United Kingdom printed money at a slower rate than Turkey.
C) Workers in the United Kingdom were more productive than workers in Turkey.
D) There were more cases of market failure in Turkey than in the United Kingdom.

Question

Quizplus · Accepted Answer

The difference in inflation rates can be attributed to the fact that the United Kingdom printed money at a slower rate than Turkey. Printing money at a faster rate can lead to an increase in inflation as there is more money in circulation without a corresponding increase in goods and services, which can drive up prices.

During the 1990s, the United Kingdom Experienced Low Levels of Inflation