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In the Long Run, the Government Budget Will Add to Sustained

Question 63

Multiple Choice

In the long run, the government budget will add to sustained inflation if


A) deficits are always accompanied by decreases in the money supply.
B) they require decreases in the money supply.
C) continual deficits are financed by the continual creation of new money.
D) government borrowing lowers interest rates.
E) the government finances the deficit by borrowing from the private sector.

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