« previous next »

Author Question: Do deficits lead to inflation? What will be an ideal response?[br][br][b][color=#FBB117]Question ... (Read 74 times)

09madisonrousseau09

  • Hero Member
  • *****
  • Posts: 559
on: Jun 30, 2018
Do deficits lead to inflation?
 
  What will be an ideal response?

Question 2

There are ________ members of the FOMC.
 
  A) 5 B) 7 C) 12 D) 19
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
Buy Test-Bank


hollysheppard095

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 30, 2018
Answer to Question 1

Governments can finance a deficit either by issuing bonds or creating new money. Some countries do not have to monetize the deficit, but if creating money is the only option then those deficits will inevitably cause inflation.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Question Question
Cell-mediated immunity, primary and secondary response. Cell-mediated immunity, primary and secondary response.
In situ hybridization. This color-coded frontal section through a rat brain reveals high ... In situ hybridization. This color-coded frontal section through a rat brain reveals high ...
The phenotypic distribution in a cross with two traits: seed color and seed shape. Plants in the F2 The phenotypic distribution in a cross with two traits: seed color and seed shape. Plants in the F2
CHEM QUESTION CHEM QUESTION
Position effect variegation of eye color in Drosophila Position effect variegation of eye color in Drosophila
Video: Non-specific disease resistance mechanisms & Skin's defense barriers

For a complete list of videos, visit our video library