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In Dealing with Their Financing Needs, Developing Countries Have Found

Question 55

Multiple Choice

In dealing with their financing needs, developing countries have found that the inflation tax provides:


A) both a short-run and a long-run solution.
B) neither a short-run nor a long-run solution.
C) a short-run solution but not a long-run solution.
D) a long-run solution but not a short-run solution.

Correct Answer:

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