Asked by Morgan Kollman on May 05, 2024
Verified
A primary requirement for development is:
A) government control over the production of essential consumer products.
B) government control over the distribution of natural resources.
C) a high confidence in foreign currency.
D) a low and predictable inflation rate that encourages saving.
E) printing money to finance a large proportion of public outlays.
Development Requirement
Conditions that must be met for a region or country to achieve economic growth, including infrastructure, education, and healthcare.
Inflation Rate
The percentage increase in the price level of goods and services in an economy over a period of time, typically measured on an annual basis.
Government Control
Government control refers to the mechanisms, regulations, and actions taken by a government to oversee, direct, or manage its country's economic activities, industries, or individual behavior.
- Comprehend the significance of banking and financial institutions in the advancement of the economy.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
D
Explanation :
A low and predictable inflation rate encourages saving, which leads to increased investment and ultimately promotes economic growth and development. High inflation rates can lead to unstable markets and discourage investment which can hinder development. Government control over production or distribution is not necessarily a primary requirement for development, and printing money can lead to inflation and instability in the long run. Confidence in foreign currency is also not a primary requirement, although it can be helpful in attracting investment and trade.
Learning Objectives
- Comprehend the significance of banking and financial institutions in the advancement of the economy.