The Most Likely Explanation for the High Inflation Rates That

question 41

Multiple Choice

The most likely explanation for the high inflation rates that countries like Belarus have suffered is

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

---

Definitions:

Mean Value

The average of a set of numbers, found by dividing the sum of all values by the number of values.

Statistical Thinking

An approach to understanding, interpreting, and communicating data through the use of statistical methods and reasoning.

Interconnected Processes

Processes that are linked with one another such that the output of one process becomes the input for another, creating a complex system where the processes depend on each other.

Statistics

The science of collecting, analyzing, interpreting, and presenting data to make informed decisions.