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.

Question

Quizplus · Accepted Answer

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.

A Primary Requirement for Development Is