8. If the government decides to finance a war by printing extra money, which of the following will occur? a. Interest rates will increase b. Real output will increase (c The government's deficit will narrow d. The rate of inflation will increase e. The government's deficit will increase

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Chapter31: The Impacts Of Government Borrowing
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8. If the government decides to finance a war by printing extra money, which of the following
will occur?
a.
Interest rates will increase
b. Real output will increase
C The government's deficit will narrow
d. The rate of inflation will increase
The government's deficit will increase
e.
Transcribed Image Text:8. If the government decides to finance a war by printing extra money, which of the following will occur? a. Interest rates will increase b. Real output will increase C The government's deficit will narrow d. The rate of inflation will increase The government's deficit will increase e.
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