As government debt reduces, inﬂationary expectations will be revised upward.

Name: As government debt reduces, inﬂationary expectations will be revised upward.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The statement is not correct. Reduction in government debt does not necessarily lead to an upward revision of inflationary expectations. Other factors such as the state of the economy, monetary policy, and consumer behavior can also impact inflationary expectations.

As Government Debt Reduces, Inﬂationary Expectations Will Be Revised Upward