In the long run, the government budget will add to sustained inflation if... O a. Deficits are always accompanied by decreases in the money supply. O b. They require decreases in the money supply. O c. Government borrowing lowers interest rates. O d. The government finances the deficit by borrowing from the private sector. O e. Continual deficits are financed by the continual creation of new money.

In the long run, the government budget will add to sustained inflation if... O a. Deficits are always accompanied by decreases in the money supply. O b. They require decreases in the money supply. O c. Government borrowing lowers interest rates. O d. The government finances the deficit by borrowing from the private sector. O e. Continual deficits are financed by the continual creation of new money.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter24: Fiscal Policy

Section: Chapter Questions

Problem 15P

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