High national inflation rates do not result in stagnation in the rate of economic growth. If they did, those nations that have the highest inflation rates should also demonstrate the lowest economic growth rates. In fact, if countries are ranked in order of inflation rates, with rate statistics adjusted so that nations are relatively comparable, no such correlation exists.
If the statements to the left are all true, which of the following must also be true?
A) Nations with high inflation rates tend to erect trade barriers.
B) It is impossible to compare economic growth rates meaningfully and reliably among countries.
C) Reducing national inflation rates through stricter government spending will not necessarily cause a lowering of that country's individual rate of economic growth.
D) If the nations were ranked in order of their population, the largest nations usually display the highest figures in terms of both inflation and economic growth.
E) Nations with the highest inflation rates never have comparably high economic growth rates.
The OA is C.
Can someone explain this CR question to me, please. Option by option. Thanks.
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High national inflation rates do not result in stagnation. .
by
Vincen » Thu Sep 14, 2017 1:19 pm
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