The Most Likely Explanation for the High Inflation Rates That

question 87

Multiple Choice

The most likely explanation for the high inflation rates that countries like Russia and the Ukraine have suffered is that

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

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Definitions:

Adaptive

The ability to change or adjust effectively to new conditions, environments, or situations, often considered vital for survival and success.

Developing

The process of growth, progress, or improvement toward a more advanced, complex, or mature state, often used in the context of countries, technology, or skills.

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.

Capable of Survival

Having the means, skills, or conditions necessary to continue existence or operations.