Question
Please answer ASAP and i will do instant thumbs-up for correct answer.** Economics Inflation in the developing country of Terbia has been rising over the
Please answer ASAP and i will do instant thumbs-up for correct answer.**
Economics Inflation in the developing country of Terbia has been rising over the last few years and is currently at a very high level. Two stock market analysts, Stanley Durro and Michelle Thompson, are discussing possible causes of inflation. Michelle thinks that the real reason why prices are rising is because Terbia's economy is expanding. Stanley disagrees. He argues that the inflation is not demand driven; on the contrary, too much money in the economy is increasing the price level.
Which of the following statements are Michelle and Stanley most likely to disagree with?
A. An increase in intrest rates is likely to reduce consumption demand and therefore inflation.
B. Purchasinng power of Terbia's currency has been declining over the last few years.
C. In a developing economy, when aggregate demand is increasing, inflation is likely to occcur.
D. Terbia's growth prospects could be adversly affected by the high level of inflation.
E. Removing supply bottlenecks is the key to reducing inflation in Terbia.
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