Some Countries Have Had High Inflation for a Long Time

question 30

Multiple Choice

Some countries have had high inflation for a long time.Others have had low or moderate inflation for a long time.Which of the following,at least in theory,could explain why some countries would continue to have high inflation?

• A)High inflation countries have relatively small sacrifice ratios and so see no need to reduce inflation.
• B)Inflation reduction works best when it is unexpected,and people in high inflation countries would quickly anticipate any change in monetary policy.
• C)In a country where inflation has been high for a long time,people are likely to have found ways to limit the costs.
• D)In a country where inflation has been high for a long time,there are no costs to the inflation.

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Definitions:

Parasympathetic Nervous

Part of the autonomic nervous system responsible for conserving energy and slowing the heart rate, enhancing digestion and relaxation.

Stimulates Digestion

The process by which various biological and chemical actions are induced to aid in breaking down food into absorbable nutrients.

Slows Heartbeat

A decrease in the rate at which the heart beats, often caused by physiological or psychological factors.

Neural Networks

A set of algorithms, modeled loosely after the human brain, designed to recognize patterns. They interpret sensory data through a kind of machine perception, labeling, or raw input.