The Government of a DVC May Purposely Cause Inflation Because

Multiple Choice

The government of a DVC may purposely cause inflation because

A) a rapid rate of inflation attracts private foreign capital into a DVC.
B) there is conclusive evidence that inflation discourages people from having large families.
C) this will strengthen the nation's position in international markets.
D) inflation works like taxation in that it may release resources from consumption so that they can be invested.