Question

Why doesn’t the fact that the "inflation solution" is only a temporary solution stop many developing countries from using it? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. check all that apply Governments often feel that they must increase government expenditures or be voted out of office.unanswered The "inflation solution" can be a permanent solution if done correctly.unanswered Central banks in developing countries often do not enjoy full independence, and are used by corrupt governments to finance deficit spending.unanswered Governments act to maintain their positions in power, and often feel that in order to do so, they have no choice but to print more money.unanswered The government is the only actor in the economy that gains from an inflation tax.unanswered

Answer 1

Answer:

Government often feel that they must increase government expenditures or be voted out of office.

Central banks in developing countries often do not enjoy full independence, and are used by corrupt government to finance deficit spending.

Explanation:

Inflation is the decline in purchasing power of a currency. The increase in inflation lead to less spending. Government increase inflation to cease increased money flow in the country. The prices of goods and services are increase in the country when inflation increases.