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:

Slope Significant

An indicator that the slope of a regression line is significantly different from zero, suggesting a meaningful relationship between variables.

Correlation Coefficient

A numerical measure that indicates the extent to which two variables fluctuate together.

Linear Relationship

A type of correlation where changes in one variable are directly proportional to changes in another variable, often displayed as a straight line in a graph.

Simple Linear Regression

Regression analysis involving one independent variable and one dependent variable in which the relationship between the variables is approximated by a straight line.