Inflationary tendencies and even hyperinflation in many Latin American countries have been exacerbated by the tendency of governments to
A) tax too heavily.
B) regulate too heavily.
C) print money to finance policies to stimulate the economy.
D) keep out foreign competition.
C
You might also like to view...
Which of the following entities can diversify risk?
A. Corporations B. Insurance companies C. Individuals D. All of these entities can diversify risk.
If 9 units of labor will be supplied if the wage rate is $12 and 10 units of labor will be supplied if the wage rate is $14, then the marginal factor cost for the tenth unit of labor is
A. $12. B. between $12 and $14. C. more than $14. D. less than $12.
The money supply will grow faster through deposit creation when the required reserve ratio is:
A. high and banks hold excess reserves. B. high and banks cannot find good customers to lend to. C. low and banks are able to lend out all of their excess reserves. D. low and banks are unable to loan out all of their excess reserves.
The real-income effect of a price change is most significant when
A) the substitution effect is insignificant. B) the substitution effect is significant too. C) the good under consideration constitutes a major portion of the consumer's budget. D) the marginal utility per dollar spent on the last unit is high.