Multiple Choice
If the government of a developing country reduces its budget deficit, then the inflation tax:
A) should increase.
B) should decrease.
C) should not change.
D) may increase, decrease, or not change depending on whether the government cuts taxes or raises government expenditures.
Correct Answer:

Verified
Correct Answer:
Verified
Q61: The central banks of many developing countries
Q62: If a currency is convertible for the
Q63: In developing countries, the government's revenues are:<br>A)limited
Q64: Some argue that developing countries that lack
Q65: The economic problems of developing countries may
Q67: The purpose of limited capital account convertibility
Q68: What are some of the institutional barriers
Q69: The macroeconomic policy choices of developing countries
Q70: In countries such as El Salvador or
Q71: Economic takeoff:<br>A)will eventually occur in all developing