westville, a small developed country, is experiencing a very high rate of inflation. roma anderson, a market research analyst, thinks that the high level of inflation is due to an acute shortage of goods available in the economy. according to her, the government should use expansionary fiscal policies to boost the economy. meanwhile, robert simpson, a member of the finance ministry, is of the opinion that the high level of inflation is the result of excessive household spending. he suggests that the government should increase personal income tax rates to curb consumption demand. which of the following, if true, will strengthen roma's claim that prices are rising due to an acute shortage of goods in the economy? a. the country's manufacturing exports declined due to severe competition from developing countries. b. the country had to reduce tariffs and import quotas after becoming a member of the wto last year. c. a severe drought in the country's agricultural belt caused considerable damage to crops and livestock this year. d. the industrial production index increased by 2 percent this year. e. the government extended tax breaks for foreign firms that have investments in westville.