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Question 14 Hyperinflation can be caused by: an inability of governments to cover their spending commitments through taxation. trade restrictions. imperfect competition. capital flight. 4 pts 

          Question 14
Hyperinflation can be caused by:
an inability of governments to cover their spending commitments through taxation.
trade restrictions.
imperfect competition.
capital flight.
4 pts
Question 14 Hyperinflation can be caused by: an inability of governments to cover their spending commitments through taxation. trade restrictions. imperfect competition. capital flight. 4 pts

Added by Sandra D.

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Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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Question 14 4 pts Hyperinflation can be caused by an inability of governments to cover their spending commitments through taxation. trade restrictions imperfect competition. capital flight.
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Transcript

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00:01 Which of the following is the most appropriate policy to create a surplus in the capital account? the surplus in the capital account means there's an inflow of money into the country and we need to have net foreign capital inflows.
00:58 So it would make sense that we need to decrease government spending.
01:04 So if the government spends less on foreign assets, then we're going to have a net foreign capital inflow.
01:33 So buyers in the rest of the world are purchasing more of our home country's assets while buyers in the domestic economy are spending less on foreign assets.
01:49 So that's what i see is going to make sense...
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