skycfa

If the income per capita rises too faster, can it cause inflation?

skycfa

its A. If income rises too fast, there would need to be an influx of capital from foreign investors to keep up with the population growth. Where else would the money come from?

Therefore, if you want to keep up with population growth (assuming its already happening), given no assumptions that capital investment into the country is growing, the growth of income per capita needs to be slow.