In Countries Such as El Salvador or Ghana, Tax Revenue

Multiple Choice

In countries such as El Salvador or Ghana, tax revenue is extremely limited due to the lack of an adequate tax-collection agency. These countries most likely will issue bonds and sell them to the central bank in order to cover government expenditures. Thus, the lack of:

A) government intervention may lead these economies to inflation and poor economic performance.
B) property rights and laws may lead these economies to inflation and poor economic performance.
C) a banking system may lead these economies to inflation and poor economic performance.
D) well-developed bond markets may lead these economies to inflation and poor economic performance.