High Inflation (Scenario) Country X Primarily Exports Coffee Beans, and in the Last

question 20

Multiple Choice

High Inflation (Scenario)
Country X primarily exports coffee beans, and in the last two years the demand for coffee beans has caused economic growth in Country X. To accommodate the economic growth, the central bank of Country X increased the nation's money supply. Country X is now experiencing inflation of over 200 percent. A group of economic experts, government representatives, and business owners have gathered for a conference in Country X to discuss the situation.
-Which of the following is most likely an additional problem faced by Country X due to its inflation?

• A) high interest rates
• B) herding behavior
• C) balance of trade
• D) country risk

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