The most likely explanation for why the U.S.government was not worried about the growth in deficits caused by its expansionary policy was:
A)they wanted inflation to occur in order to wipe out the value of government debt.
B)they knew they could pass significant tax increases to manage the deficit.
C)they expected that the economy would grow out of the deficit.
D)they wanted to make the dollar exchange rate favorable compared to the Yuan.

Question

Quizplus · Accepted Answer

The U.S. government likely believed that economic growth would increase tax revenues and reduce the deficit over time, making the current deficits less concerning.

The Most Likely Explanation for Why the U