Central Banks in Most Developing Countries

Multiple Choice

Central banks in most developing countries:

A) do not recognize the link between money creation and inflation.
B) recognize the link between money creation and inflation but don't care about inflation.
C) recognize the link between money creation and inflation and exploit this link to reduce their budget deficit.
D) recognize the link between money creation and inflation but often have no other means of financing government expenditures than increasing the money supply.