A Country with High Inflation,rising Budget and Trade Deficits,and a Rapidly

question 16

Multiple Choice

A country with high inflation,rising budget and trade deficits,and a rapidly expanding money supply

• A)is in transition.
• B)has macroeconomic instability.
• C)is practicing import substitution.
• D)is practicing export promotion.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

Weekly

Pertains to something that occurs, is done or calculated every week.

Basket Of Goods

A fixed set of consumer products and services valued on a regular basis for measuring inflation in an economy or specific market.

Price Changes

Alterations in the cost of goods and services over time, which can be influenced by factors such as supply, demand, and inflation.