The phrase "inflation is repudiation" applies only if:
A) inflation is expected.
B) the government has no debt.
C) the government is a creditor.
D) the government is a debtor.

Question

Quizplus · Accepted Answer

The phrase "inflation is repudiation" means that when a government inflates its currency, it is effectively repudiating its debt by reducing the value of the money owed to its creditors. This applies only if the government is a debtor, meaning it owes money to others. Choice D is the best answer as it identifies the necessary condition for the phrase to apply.

The Phrase "Inflation Is Repudiation" Applies Only If