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

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

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section18.5: Should The Government Balance Its Budget?

Problem 5QQ

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