If the Government of a Developing Country Reduces Its Budget

question 66

Multiple Choice

If the government of a developing country reduces its budget deficit, then the inflation tax:

• A)should increase.
• B)should decrease.
• C)should not change.
• D)may increase, decrease, or not change depending on whether the government cuts taxes or raises government expenditures.

---

Definitions:

Whooping Cough

A highly contagious bacterial infection of the respiratory tract characterized by severe hacking coughs followed by a high-pitched intake of breath that sounds like "whoop."

Crowing Sound

A sharp, harsh sound resembling the cry of a rooster, often associated with breathing difficulties.

Tidal Volume

The amount of air inhaled or exhaled during a normal breath at rest.

Abbreviation

A condensed version of a word or phrase used for space-saving or to avoid repeating.