« previous next »

Author Question: Do deficits lead to inflation? What will be an ideal response?[br][br][b][color=#FBB117]Question ... (Read 158 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?

Patients who have been on total parenteral nutrition for more than a few days may need to have foods gradually reintroduced to give the digestive tract time to start working again.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Funny Maths Response Funny Maths Response
How to create a table of values displaying commission and earnings (Question 1) How to create a table of values displaying commission and earnings (Question 1)
Exponential Growth Question Exponential Growth Question
Hardy-Weinberg Question P1 Hardy-Weinberg Question P1
economic question economic question
economic question (having trouble) economic question (having trouble)
Video: Interview with Person having Obsessive Compulsive Disorder

For a complete list of videos, visit our video library