The central banks of many developing countries choose to pursue policies that generate high levels of inflation, because the benefits of doing so seem to exceed the costs.
Answer the following statement true (T) or false (F)
True
In many cases, money creation is the only means that governments in developing countries have to finance their expenditures. While this strategy is advantageous in the short run, it has drastic long run consequences.
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Long-lived goods used for producing other goods and services are called:
A. value-added goods. B. consumption goods. C. capital goods. D. non-market goods.
When U.S. Steel, a steel producer, bought control of iron ore companies at the beginning of the 20th century, the company was initiating
A) a horizontal merger. B) a vertical merger. C) a cartel. D) an expropriation.
Economists believe that people who force themselves to always eat everything on their plate at a restaurant, regardless of how full they might feel, likely do so because:
A. they gain negative utility from insulting the chef. B. they overvalue the opportunity costs of their health and time involved with eating food they don't really want. C. they include the sunk cost of their meals in making their decision. D. they undervalue the true benefit of eating too much.
According to institutionally-focused economists:
A. there is no relationship between PQ and MV because Q isn't constant. B. there is no relationship between PQ and MV because V is constant. C. the direction of causation goes from PQ to MV. D. the direction of causation goes from MV to PQ.