The most likely explanation for the high inflation rates that countries like Russia and the Ukraine have suffered is that
(a) large inflows of foreign funds increase the money supply, causing inflation.
(b) without inflation, these countries would be unable to achieve high rates of growth.
(c) borrowing from the central bank is the most expedient method of funding the government's expenditures.
(d) the flood of financial innovations has increased liquidity in these nations' economies.
Answer: C
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