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Rapid Money Growth Quiz

A deficit can be the source of a sustained inflation only if

If budget deficits lead to a sustained inflation, it is true that the deficit can be regarded as an initiating factor, but

Large and persistent budget deficits have frequently been the ultimate source of inflationary monetary policies in developing countries because

Budget deficits are more likely to be inflationary in those countries that

In those countries that do not have well-developed capital markets

Kayla, an economist, is interested in knowing if government deficits have been a factor in explaining rapid money growth in her country in the past twenty years. What ratio should Kayla examine?

If an economist were interested in testing whether federal budget deficits had been the cause of excessive monetary growth for a country for the period 1950–2000, she would examine the behavior of

Evidence from episodes of hyperinflation indicates that

The German hyperinflation of 1921–1923 provides important support for the view that high money growth results when

Analysis of episodes of hyperinflation indicate that the rapid money growth leading to the inflation is the result of