Hyperinflation occurs when the government runsa large budget _________, which the central bankfinances with a substantial monetary _________.a. deficit; contractionb. deficit; expansionc. surplus; contractiond. surplus; expansion

Hyperinflation occurs when the government runsa large budget _, which the central bankfinances with a substantial monetary _.a. deficit; contractionb. deficit; expansionc. surplus; contractiond. surplus; expansion

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Money Growth And Inflation

Section: Chapter Questions

Problem 4CQQ

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Question

Hyperinflation occurs when the government runs
a large budget _________, which the central bank
finances with a substantial monetary _________.
a. deficit; contraction
b. deficit; expansion
c. surplus; contraction
d. surplus; expansion

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